☕ DrinkCoffeeAndProfit
Smart money moves before breakfast
Inspiration Quote for the Day
“In the business world, the rearview mirror is always clearer than the windshield.”
— Warren Buffett
PARTNER MESSAGE
Dear Reader,
Apple is up roughly 2,000% since 2012.
But Broadcom — the once little-known company that made the chips inside the iPhone — has skyrocketed more than 15,000%. 
Beating Apple 7-to-1!
And we saw the exact same thing happen with Nvidia … the undisputed king of AI. 
Here too, hidden suppliers like Vertiv and Super Micro have completely crushed Nvidia’s returns over the last couple of years.
The big lesson here?
The headline company may get all the attention, but the behind-the-scenes supplier has often delivered the life-changing gains.
As the historic $1.75 trillion SpaceX IPO approaches, many investors are convinced that buying SpaceX shares on IPO day can turn a small stake into a HUGE fortune. 
The problem? SpaceX shares are already greatly inflated even before the IPO.
They’ve already shipped 5 billion critical components to SpaceX. And they are the cornerstone for Elon’s new endeavor I call “Project Unlimited.”
And if you want to position yourself for a shot at a real windfall, you need to look at the exact firm supplying the tech.
However, you need to make your move before the June listing date makes front-page news.
Signature
Michael Robinson
The Morning Ritual
Your Neighbor Just Opened a Fidelity Account for Two Thousand Dollars. He Thinks He’s Getting Rich Next Thursday.
My brother-in-law called last night. He was excited. Fidelity just lowered the SpaceX IPO minimum to `$2,000`. He already moved the money. “I’m getting in on day one,” he said. I asked him what the company earns. Long pause. Then he changed the subject to his lawn mower.
I do not blame him. Half the country is having the same conversation right now. SpaceX goes public next Thursday at `$135` a share. Your coworker is talking about it. Your barber is talking about it. The last time I heard this much noise about a stock was early 2021, right before everybody discovered that what goes up also comes down.
But here is what nobody talks about. The biggest money in these moments almost never comes from the headline stock. It comes from the company behind it.
In One Sip
► SpaceX launched its IPO roadshow yesterday. The company goes public next Thursday on the Nasdaq under ticker SPCX at `$135` a share. It would be the largest IPO in history.
► Fidelity slashed its IPO access minimum from `$500,000` to `$2,000`. That opened the door to millions of retail investors who were never in the room before.
► S&P `500` futures are down about `0.5%` this morning ahead of the May jobs report. The `10`-year yield is at `4.48%`. That is the rate the government pays to borrow for a decade. The VIX sits at `15.40`.
► The May jobs number drops at `8:30` AM. Economists expect `80,000` new hires. A hot number could move rate-hike odds higher.
► Here is the buried story: Fidelity’s anti-flipping rule bans you from selling SpaceX shares for `15` days after listing. The house wants you in. Getting out is the part nobody reads.
Why It Matters for Your Money
Most people will buy SpaceX on day one and feel smart about it. Some of them will make money. But I have seen this pattern three times now, and the real winners are never where the crowd is looking.
Apple gained `2,000%` since 2012. If you put in `$10,000`, you made `$200,000`. Good money. Life-changing for some. But Broadcom—the company that made Apple’s modem chips—gained `15,000%`. That is the same `$10,000` turning into `$1.5` million. Most people have never heard of Broadcom.
Nvidia soared `770%` in two years. Vertiv, the company that keeps Nvidia’s data centers from overheating, climbed `1,700%`. More than double. Most people have never heard of Vertiv either.
Think about that for a second. The company everybody talks about at Thanksgiving dinner does well. The company nobody can pronounce does better.
I think the same pattern is setting up with SpaceX right now. The mistake is assuming the rocket is the trade. The money might be in the parts.
The Wealth Angle
Here is where people get into trouble. They see the headline. They see the hype. They assume the obvious trade is the best trade. It almost never is.
My guess is that half the people reading this know someone who plans to buy SpaceX next week. My guess is also that none of those people have looked at the supplier list in the S-1 filing. That is the gap. The crowd buys the name. The patient investor reads the footnotes.
I would not chase `$135` on day one. Your cash is earning over `4%` right now just sitting in a high-yield savings account. There is no penalty for patience. There is always a penalty for FOMO.
☕ Key Insight:
The biggest IPO in history starts trading in one week. The crowd is focused on `$135` a share. The Broadcom Rule says the supplier wins. It has worked three times in a row.
Coffee Break Move
If you are tempted by SpaceX: Before you open that Fidelity account, pull up the S-1 filing. Look at the suppliers and partners. The name you have never heard of is usually the name worth knowing. That is how the Broadcom Rule works.
If you are sitting this one out: Good. Your high-yield savings account is paying real money right now. Cash is not a consolation prize. It is ammunition for the correction that always follows a hype cycle.
My brother-in-law will probably text me again tonight. I already know what I am going to tell him. The rocket gets the ticker tape. The guy who sells the fuel gets the money.

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