Things I learned in 2025::
+ Stay the course. Everyone who stayed the course did better than me.
+ It’s OK to bail on companies whose fortunes go awry, usually when management shoots itself in the foot.
+ Stocks go up because of emotions. Emotions come in waves. This year was not the year for the Magnificent Seven. Too many people questioning that it was “overpriced.” The train left the Mag Seven station a while back.
+ AI is real. It is and it will transform our lives. Just as it is transforming mine. Though ChatGPT was an overnight sensation — the fastest ever — its effect on boosting cash sales and real earnings will be slower. I have no doubts. If Cheap Harry (me) is paying real money each for it today, everyone else will, sooner or later, use it and pay for it.
All of us are expecting our vendors to use AI to win our favor. Last night I made a dinner reservation on the phone with an AI bot. It worked painlessly. Much to my surprise.
Amazon has snuck in Rufus. Ask it questions about the product you’re keen on. You’ll be impressed.
The AI continuing boom will have massive implications.
Barclays analysts say out half the G.D.P. growth in 2025 stemmed from “spending on data centers, chips, power grids, networking equipment and other AI-related capital expenditure.”
Going into 2026, corporate investment in A.I. shows no signs of slacking.
Booms do attract competition, which makes picking stocks harder. Nvidia is no longer the only company making AI chips. Think Nvidia as a maker of general purpose, but pricey, AI chips. Think companies like Google, Broadcom. Amazon, Meta, Microsoft, Apple and AMD, now also making AI chips.
Hence I’ve broadened my own stock portfolio. It now looks like an ETF, with no focus. Call it Harry’s Chosen Stocks ETF. I now own banks and gold miners. You can see my stocks in the blog’s right column. What you can’t see is the weighting.
This amazing chart is the story of 2025.
It shows the stock of a big gold miner Barrick compared with the Magnificent Seven.
At our age we all become dividend guys
LADR is an 8% dividend payer, which increases. It’s a REIT. It lends on and owns commercial real estate. It gives conservative lending and investing a whole new meaning.
Its shareholders are ETFs and funds enjoying LADR’s high yield.
Both Fitch Ratings and Moody’s Ratings currently maintain an investment grade rating with a stable outlook for the company.
+ Moody’s Ratings: Baa3 rating with a stable outlook.
+ Fitch Ratings: BBB- rating with a stable outlook.
As they say in Australia, an 8% dividend yield is substantially better than a slap in the belly with a cold fish.
Do not expect any significant capital appreciation. It’s a fine dividend stock, pure and simple.
Favorite cartoons
Look what AI did to me. This is scaring the bejeebes out of the grandchildren.
See you soon — Harry Newton
