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For decades, the great houses of Ford Motor Company (F +0.58%) and General Motors (GM +1.17%) had sent their emissaries to the East, seeking not merely a market, but a reflection of their own fading glory. They envisioned a China mirroring America’s automotive appetite, a land where chrome and horsepower would reign supreme. Instead, they found a patient adversary, a culture that absorbed their ambitions like water into sand, and then, with a quiet grace, began to build something entirely new. They sought to replicate the American dream, but the dream, as it always does, transformed in a foreign land.

And here’s the thing. I’m not against ambition. I encourage it. But I also like to see a solid business plan. A safety net. Something other than sheer willpower and a Twitter account. While they’re dreaming of robotaxis and Optimus (seriously, that name), the core EV business is… well, it’s wobbling. Sales down, costs up. It’s the financial equivalent of trying to juggle chainsaws while riding a unicycle. Not a good look.

Buffett saw something in Kraft Heinz, back when those two names were stitched together. A promise of scale, of efficiency. He thought they could wring more from the land. But the soil wasn’t as rich as it seemed. Cost-cutting can only take you so far. Eventually, you need growth, and that didn’t come. Now they’re talking about splitting the company, going back to two smaller farms. It’s a familiar story – trying to force things, to bend nature to your will. Sometimes, a thing just won’t grow.

Alphabet’s projected capital expenditure of at least $175 billion this year underscores the scale of investment required to support the proliferation of artificial intelligence. This is, of course, not merely a demand signal for semiconductors; it reflects a fundamental shift in infrastructure requirements. The question is not whether demand exists, but rather the capacity of the supply chain to meet it, and the resultant impact on pricing dynamics.

Every boom, and every subsequent wobble, requires a catalyst. AI has had its share of these, rising and falling like a badly-inflated dragon. The emergence of DeepSeek, a Chinese chatbot that claimed to rival the Western offerings while supposedly running on a budget that would barely cover a decent tea service for the development team, caused a similar flutter.¹ The markets, of course, are never entirely sure what to make of such claims. They tend to assume the worst, then briefly celebrate when the worst doesn’t immediately happen.

USDC, or the ‘USD Coin,’ presents a curious case. It is, in essence, a claim upon the United States dollar, a digital echo of a tangible asset. Fully backed, they assure us, by cash and ‘cash equivalents’ – a phrase that always evokes images of vast, subterranean vaults and the meticulous accounting of forgotten ledgers. It is a system of perfect mirroring, a digital simulacrum designed to maintain a one-to-one correspondence with its analog progenitor. A curious exercise in tautology, perhaps, but one that, in the present climate, possesses a certain… allure.

February 2nd. Mark it down. That’s when the pieces started shifting. A $1.25 trillion valuation tossed around like confetti. It’s enough to make a sane man reach for the bourbon. They want you focused on the rockets, the Mars colonies, the shiny distractions. But this isn’t about getting to space, it’s about owning the information that flows from it. They’re building a digital panopticon, a surveillance network masquerading as progress. And the worst part? It’s working.

A more discreet, and potentially more rewarding, opportunity may lie with Kratos Defense & Security Solutions (KTOS +10.74%). It is a smaller entity, but increasingly integral to the United States military’s supply chain. Its offerings – low-cost unmanned aerial vehicles, platforms for hypersonic testing, and space communication hardware – are not the headline items, but they are becoming indispensable.

It is, however, the receiving of dividends that seems to hold a particular appeal. The portfolio, built over decades, contains a number of companies that reliably distribute a portion of their earnings. Two, in particular – Coca-Cola and Domino’s Pizza – appear poised to offer a slight increase in these distributions. A modest gesture, certainly, but one that speaks to a certain stability in a world increasingly defined by its volatility.