Michael Monaghan

Dell is earning its premium valuation because its AI server business is growing rapidly while its traditional business is also growing with expanding margins. Dell has demonstrated pricing power, passing rising component costs to customers and even taking more margin. Michael Dell dominates the supply chain, which helps keep costs down, and Dell continues to innovate as the preferred packager that puts servers into racks and builds out token factories for AI customers.

SpaceX embeds three massive businesses — Starlink, defense, and AI compute/data. Revenue jumped $27 billion during the roadshow, making near-term cash-flow positivity likely. The AI compute business is turning profitable by selling excess capacity to Anthropic and Google at 60-70% EBITDA margins. At 5-10x forward sales, valuation is not a stretch. The founder-led vision, low-cost provider position, and float/index inclusion dynamics add tailwinds. We are buying the stock on the open.

Founder-led companies have historically outperformed by an average of 4% per year versus board-hired CEOs; the S&P 500 and Nasdaq are underweight such companies, so concentrating on them through the Founders 100 ETF (FFF) provides higher efficacy. The fund caps individual positions at 7% to manage risk.