Core Insights - InterContinental Hotels Group (IHG) has successfully rebounded from the COVID-19 pandemic, focusing on expanding its Holiday Inn brand globally [1] - The hotel industry remains competitive, with rivals like Marriott and Hilton also aiming to capture market share in rapidly growing regions [2] Expansion Strategy - China is identified as a crucial market for InterContinental's growth, with over 1,400 existing or planned hotels across more than 200 cities [3][4] - The company plans to broaden its presence beyond tier-1 cities in China, enhancing its footprint in both mainland China and Taipei [4] Technological Advancements - InterContinental has appointed Wei Manfredi to lead its artificial intelligence strategy, aiming to improve IT architecture and form partnerships with tech companies [5] - AI will play a role in maximizing revenue for hotel property managers and enhancing the traveler experience through AI-powered applications [6] Market Position and Growth Potential - InterContinental's midmarket reputation in the Americas presents opportunities for improvement, particularly in luxury and premium segments [7] - Despite a recovery in travel stocks, InterContinental's performance has lagged behind competitors, indicating potential for growth initiatives to enhance shareholder returns [8]

Core Insights - USA Rare Earth is establishing a mine-to-magnet rare-earth supply chain in the U.S., a significant move given the country's limited control over global rare-earth reserves [1][2] - The U.S. government has issued a letter of intent to provide USA Rare Earth with approximately $1.6 billion, which includes a $1.3 billion loan and $277 million in federal funding [3] - The company has seen its stock price increase over 80% this year, but future success will depend on effective execution of its plans [3] Company Overview - USA Rare Earth controls mining rights to the Round Top deposit in West Texas, recognized as one of the most significant rare-earth deposits in the U.S., which also contains lithium and gallium [4] - The company is constructing a manufacturing facility in Stillwater, Oklahoma, aimed at producing sintered neodymium magnets at scale, expected to be operational by the first half of 2026 [5] Market Position - With its mining site in Texas and manufacturing facility in Oklahoma, USA Rare Earth is positioned to be one of the few fully integrated rare-earth companies outside of China, optimizing the entire process from extraction to production [7] - The company has developed extraction and separation practices at its Colorado lab that could save tens of millions in costs, crucial for a capital-intensive industry [8] Financial Outlook - USA Rare Earth is currently pre-revenue, and its timeline for generating meaningful revenue remains uncertain, with inherent execution risks in both mining and manufacturing [10] - If market dynamics for rare-earth materials remain stable over the next decade, investing in USA Rare Earth while it is priced as an early-stage start-up could yield long-term benefits [11]

Core Insights - The Vanguard Total Stock Market ETF (VTI) and the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) serve as foundational investment options for diversified exposure to the U.S. stock market [1][8] Cost and Size Comparison - Both VTI and SPTM have an identical expense ratio of 0.03% and similar dividend yields, making them equally affordable for investors [3] - VTI has a significantly larger asset under management (AUM) of $571 billion compared to SPTM's $12 billion, indicating greater liquidity for VTI [3][10] Performance and Risk Analysis - Over the past year, VTI has returned 13.55% while SPTM has returned 13.45%, showing nearly identical performance [3] - The maximum drawdown over five years for VTI is -25.36%, while SPTM's is -24.15%, indicating comparable risk profiles [4] Holdings and Sector Allocation - SPTM tracks the S&P Composite 1500 Index and includes 1,511 U.S. stocks, with a sector allocation of 34% in technology, 13% in financial services, and 11% in consumer cyclical [5][6] - VTI tracks the CRSP US Total Market Index and holds over 3,500 stocks, with a similar sector allocation of 33% in technology, 13% in financial services, and 11% in consumer cyclical [7] Investment Implications - Both ETFs provide broad, low-cost access to the U.S. stock market, with VTI offering more diversification due to its larger number of holdings [9] - The choice between VTI and SPTM may depend on investor preference for fund size or index coverage, as both are strong options for core U.S. equity holdings [10]

Core Insights - Coronation Fund Managers increased its stake in MercadoLibre by 53,352 shares, valued at approximately $112.06 million, reflecting a significant investment in the company [2][3] - The total value of Coronation's position in MercadoLibre reached $285.59 million, marking an increase of $78.93 million from the previous filing, driven by both new purchases and share price appreciation [2] - MercadoLibre's shares have appreciated by 19.7% over the past year, outperforming the S&P 500 by 4.68 percentage points [3] Company Overview - MercadoLibre operates a leading e-commerce and fintech platform in Latin America, with a market capitalization of $114.02 billion and a revenue of $26.19 billion over the trailing twelve months [4][5] - The company generates revenue through transaction fees on its marketplace, financial services, logistics, and value-added services for merchants and consumers [8] - MercadoLibre's competitive advantage lies in its integrated ecosystem of online marketplaces, digital payments, credit, and logistics, tailored to the Latin American market [5] Financial Performance - The company reported a net income of $2.08 billion over the trailing twelve months [4] - Revenue growth remains robust, with a year-over-year increase of 39% in the third quarter, alongside expanding margins and improved logistics efficiency [10] Investment Implications - The increased stake by Coronation Fund Managers indicates a strong conviction in MercadoLibre's long-term growth potential, as it now represents 12.81% of their $2.23 billion reportable assets under management [3][9] - The fund's strategy includes pairing MercadoLibre with other emerging-market growth companies, suggesting confidence in the company's competitive position despite its size [11]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is leading the AI chip supply chain with superior technology and scale, indicating potential long-term growth despite existing risks [1]. Group 1: Company Performance - TSMC is experiencing explosive demand for its AI chips, which is contributing to strong profit margins [1]. - The stock prices referenced are from January 26, 2026, suggesting a focus on recent market performance [1]. Group 2: Market Outlook - There is a question regarding whether Wall Street has already factored in the potential upside for TSMC, indicating a need for investors to assess current valuations [1]. - The long-term upside potential remains a key consideration for investors, despite the presence of risks [1].

Core Viewpoint - Costco is a leading player in the retail sector, showing significant investment returns over the past decade, outperforming the S&P 500 index [1][2]. Group 1: Investment Performance - Over the past 10 years, Costco has produced a total return of 682%, meaning a $100 investment would be worth $782 today [1]. - Costco's current market capitalization stands at $417 billion, with shares trading at a price of $940.10 [3][4]. Group 2: Business Fundamentals - The company has expanded its global presence with over 900 warehouses, leading to increased merchandise sales and a larger membership base [2]. - Costco is experiencing higher net income due to its growth in warehouse numbers and customer loyalty [2]. Group 3: Stock Valuation - Costco's shares are currently considered expensive, with a price-to-earnings ratio of 52, suggesting that investors should wait for a pullback before considering an investment [4].

Core Viewpoint - Advanced Micro Devices (AMD) had a strong performance in 2025, with a stock increase of 77.3%, but faces questions about its ability to maintain this momentum in the AI sector in 2026 [1][3]. Company Performance - AMD's stock price rose approximately 121% over the past year, reflecting increased demand for its AI products, particularly the Instinct AI accelerators [4]. - The company reported a revenue growth of 36% year-over-year, reaching $9.2 billion, surpassing analyst expectations of $8.7 billion, with adjusted earnings per share of $1.20 compared to the estimated $1.16 [7]. - AMD's fourth-quarter guidance anticipates revenue of $9.6 billion, projecting a full-year revenue of $34 billion, which would represent a 31% growth rate [8]. Market Position and Growth Potential - The AI chips market is projected to grow at a compound annual growth rate (CAGR) of 15.7%, reaching $565 billion by 2032, indicating significant growth opportunities for AMD despite Nvidia's dominance [10]. - AMD's smaller market cap compared to Nvidia is viewed as advantageous, providing a substantial growth runway for the company [9]. Analyst Sentiment - A consensus among 43 analysts rates AMD stock as a moderate buy, with an average score of 4.4 out of 5, and a high target price of $380, suggesting a potential upside of 50% from its current price [11]. Competitive Landscape - AMD's strategy does not require it to surpass Nvidia in market cap; it simply needs to continue its current trajectory to remain competitive in the AI sector [6]. - The company has transitioned from being a late entrant in the AI market to a rapidly growing contender, with the potential to become a leading AI stock by 2026 if it successfully carves out its niche [12].

Core Viewpoint - International stocks are experiencing a resurgence, with ETFs like the iShares Core MSCI Total International Stock ETF (IXUS) outperforming the S&P 500, indicating a potential shift in investment focus for 2026 [1][2]. Group 1: Performance of International Stocks - In 2025, international stocks outperformed domestic stocks for the first time in a long period, with many ex-U.S. ETFs significantly beating the S&P 500 [1]. - The iShares Core MSCI Total International Stock ETF (IXUS) has increased by 7.5% year to date, while the S&P 500 has only gained 1.9% [1]. Group 2: Small Cap Stocks - The resurgence of international stocks includes smaller stocks, with the Avantis International Small Cap Value ETF (AVDV) being highlighted as a top choice for 2026 [2]. - The Avantis ETF has outperformed U.S. small-cap value indices over the past five years, indicating its effectiveness in the small-cap space [3]. Group 3: Fund Characteristics - The Avantis International Small Cap Value ETF is actively managed, which is advantageous in the less efficient small-cap market, particularly for international stocks that receive less attention from U.S. investors [4]. - The fund has a significant geographic allocation, with 32% of its portfolio in Japanese small caps, which are viewed as undervalued and potentially benefiting from Japan's economic policies [5]. - The Avantis ETF has a total asset size of $17 billion and an annual expense ratio of 0.36%, making it a cost-effective option for investors [6].

Core Insights - Ford Motor Company experienced a significant stock increase of 33% in 2025, which is atypical for the company [1] - Over the period from late January 2021 to January 27, 2023, Ford shares generated a total return of 58%, resulting in a portfolio balance of $158 for a $100 investment [2] - In comparison, the S&P 500 index produced a total return of 94% during the same timeframe, indicating that investors seeking substantial gains would have been better off investing in the index [2] Company Performance - The current stock price of Ford is $13.88, with a market capitalization of $55 billion [3] - The stock has a day's trading range between $13.79 and $13.98, and a 52-week range from $8.44 to $14.50 [4] - Ford's gross margin stands at 7.58%, and the company has a forward price-to-earnings ratio of 9.5, which may attract value investors [6][7] Industry Context - The automotive industry is characterized as mature, with limited potential for outsized durable growth, which poses challenges for Ford's profitability [5] - The company faces substantial expenses and capital expenditures that negatively impact profit margins and return on invested capital [5] - Despite the low forward price-to-earnings ratio, long-term optimism regarding Ford's ability to outperform the market remains low [6]

Core Viewpoint - Lesser-known AI stocks, such as Fiverr, may provide superior returns despite being overlooked by investors [2] Group 1: Company Overview - Fiverr connects freelancers with businesses needing services, positioning itself as a significant player in the gig economy [3] - The company has experienced a surge in demand for AI-related services, with searches for AI-agentic services increasing by 18,347% in the six months prior to May 2025 [4] Group 2: Financial Performance - Fiverr has become consistently profitable despite a decline in top-line growth, attributed to disciplined cost-cutting measures [7] - The company's trailing-12-month revenue stands at $427.4 million, indicating substantial growth potential even with a modest market capture [9] Group 3: Market Potential - The gig economy is expected to expand, providing Fiverr with opportunities for growth beyond AI services [8] - Fiverr operates in a $247 billion addressable market, suggesting significant room for revenue growth [8]