☕ DrinkCoffeeAndProfit
Smart money moves before breakfast
PARTNER MESSAGE

Editor’s Note: If you want to know which chipmaker could be the next NVIDIA, just ask Jeff Brown.

He knows more about AI chips than practically anyone on the planet — Thanks to his senior executive roles at Qualcomm, Juniper Networks, and NXP Semiconductors…

And Jeff just uncovered that one tiny chipmaker — 148 times smaller than NVIDIA — is set to provide Musk 5 billion chips in the next two years alone.

Click here for the full story or read more below.

Dear Reader,

Yahoo Finance says Musk's new project could:

"Upend another industry just as he did with cars and rockets."

And if his past ventures are anything to go by…

It could once again give normal folks the chance to retire with unbelievable wealth.

Just imagine you got in on Musk's previous ventures…

Before he revolutionized industries.

With Tesla, he reinvented the car…

And created an army of Teslanaires — early investors who cashed out for millions.

And with SpaceX…

He reinvented rockets…

And anyone who was early to the game could have turned $1,000 into over $64.5 million.

Now, he's about to revolutionize a brand-new industry…

And you can get your own stake today for around $50.

If you missed out before…

Don't let this pass you by.

Click here to see what Musk has been working on.

Regards,

Jeff Brown
Founder & CEO, Brownstone Research
Inspiration Quote for the Day
“Risk comes from not knowing what you’re doing.”
— Warren Buffett
The Morning Ritual
Your Retirement Account Bought Something This Morning and Nobody Asked
My brother-in-law texted at 6:14 this morning. All caps. “DID SOMETHING HAPPEN TO MY FUND?”
He had opened his brokerage app and found five new company names sitting inside his retirement account. He did not buy them. His fund did it on its own. Because the rules changed and his money followed orders.
In One Sip
► If you own any fund tracking the Nasdaq-100, your retirement account changed at the opening bell. Five new companies were added. Five were removed.
► More than `$800` billion in fund assets had to mirror the change. Every fund was required to buy the new names. Regardless of price. Regardless of risk.
► One of the new additions is an AI cloud company carrying `$25` billion in debt. It lost `$740` million last quarter. Your fund bought it anyway.
► New rules that took effect in May let freshly public companies enter your fund faster than ever. The old waiting period is gone.
► The buried story: SpaceX is likely next. If it qualifies next month, your retirement account buys again. No permission needed.
Why It Matters for Your Money
Say you have `$100,000` in a Nasdaq-100 fund. Roughly `$500` to `$700` of it just moved into a company you have probably never heard of.
That company pays `$536` million per quarter in interest alone. You did not approve this. A formula did.
If you hold that fund in a taxable account, the forced buying and selling can trigger capital gains distributions. You could owe taxes on gains you never chose to take.
Think about that for a second. Same account. New risk. Nobody called.
The Wealth Angle
I think the bigger story is what happens next.
New rules now let mega-cap companies enter your index fund after just `15` trading days on the market. The old safeguard that kept brand-new stocks out for months? Gone as of May.
SpaceX went public June 12 at a `$1.77` trillion valuation. Under these rules, it could land in your retirement account as early as next month. When it does, your fund buys at whatever price the market sets. No vote. No opt-in.
That is not bad news if you know it is coming. It is bad news if you find out from your quarterly statement. The difference between those two outcomes is about five minutes on your brokerage app this morning.
☕ Key Insight:
Your index fund is only as passive as the rules behind it. When those rules change, your money moves. Most people will not notice until it already has.
Coffee Break Move
Log into your 401(k) or brokerage account this morning. Check how much of your retirement sits in funds that track the Nasdaq-100.
If you are comfortable with the new names, no action needed.
If you prefer to choose what you own, this is the morning to look. How much sits in index funds? How much in funds where somebody picks?
I called my brother-in-law back after coffee. He is keeping his fund. But he said he is glad someone told him what happened before he saw it on a statement. That is the whole point. Know what you own before the next rebalance decides for you.

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