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Broadcom (AVGO 1.70%) has taken a tumble – roughly 25% off its peak. The Relative Strength Index (RSI), that mystical divination tool favoured by chart-readers, has dipped to 39. That’s levels not seen since the Tariff Wars of Last April, when the High Priests of Trade declared a particularly unpleasant curse upon all imported widgets.¹ In short, the stock is, shall we say, looking a little…undervalued. And that, my friends, is an opportunity. A rare glimmer of sanity in a world determined to prove its own absurdity.

The Form 4 filing, a document ostensibly intended for transparency, instead serves as a ghostly echo of decisions made behind closed doors. It reveals that this purchase is not an isolated event. Since September 2023, Mr. Fetter has engaged in six similar acquisitions, each ranging from 3,000 to 3,700 shares. This methodical approach suggests not a belief in rapid appreciation, but a slow, deliberate positioning – a quiet entrenchment within the structure. The total now stands at 22,291 shares, representing an 18.63% increase from his previous direct holdings of 18,791. The significance, however, eludes easy definition.

Records indicate the sale of 12,274 shares, valued at approximately $839,000. This figure, however, is deceptive in its solidity. It is merely the visible manifestation of an underlying structure—a “sell to cover” arrangement, as the documents term it, tied to the vesting of Restricted Stock Units. The transaction, therefore, is not so much a declaration of intent as a mechanical consequence, a shadow cast by a more fundamental law. To interpret it as a signal regarding the company’s prospects would be akin to divining the future from the fall of dust motes.

The usual chorus proclaims opportunity. A “ground floor” purchase, they murmur, as if the foundations weren’t constructed on a rather unstable plot of land. Still, a clever speculator might consider the premises, especially given the current… eccentricities of the global energy market. Let us delve into the particulars, shall we?

As of 12:08 p.m. ET, ServiceNow took a 4.4% tumble. The iShares Expanded Tech-Software ETF (IGV 3.82%)? Down 4%. It’s a bloodbath! (Okay, maybe a mild scrape. But still!) It’s enough to make a grown macro strategist weep into his borscht.

Yet, history, that relentless pedant, whispers a different tale. Investing in the broad index, despite the occasional fit of market pique, has proven, over the long haul, to be a remarkably sensible endeavor. It is as if the market, despite its tantrums, possesses an inherent tendency to… ascend. One might even suspect a mischievous imp is secretly tugging at the levers of commerce, ensuring a general upward trajectory. Regardless, for the patient investor, one who views decades as mere blips in the grand scheme of things, tracking the S&P 500 remains a perfectly reasonable, if slightly dull, pursuit.

ExxonMobil (XOM +2.66%) is…big. Like, really big. It’s the kind of company that probably has its own weather system. Last year they raked in $28.8 billion in earnings and $52 billion in cash flow. That’s not pocket change, folks. That’s enough to buy a small country…or at least a really nice golf course. They’ve been on a mission to invest in their most profitable assets—the stuff that’s easy to get and makes the most money—while simultaneously trimming the fat. Apparently, they’ve saved $15.1 billion since 2019, which is more than all the other major oil companies combined. It’s like they read a self-help book titled “How to Be Efficient and Also Very Rich.” And their balance sheet? Let’s just say it’s the envy of every other oil company. They’re practically Scrooge McDuck swimming in cash.

Now, before we envision Mr. Shuster suddenly decamping to a tropical island, it’s worth noting that a good chunk of those shares weren’t actually sold sold. 36,162 were withheld – a rather elegant way of saying they were used to cover taxes. Apparently, even chairmen of companies insuring mortgages aren’t exempt from the taxman’s grasp. The whole affair stemmed from the exercise of stock options – a corporate incentive scheme that, frankly, could fill a small library with explanations. Essentially, he got to buy shares at a pre-set price, and then sold some to cover the resulting tax bill. Not exactly a bold statement on the company’s future, more a practical matter of accounting.

The matter concerns promotional materials for Anktiva, both in a televised advertisement and in remarks offered by Dr. Patrick Soon-Shiong, the company’s Global Chief Scientific and Medical Officer and Executive Chairman, during a recent public discussion. The FDA, it appears, finds these presentations to be, shall we say, lacking in precise adherence to factual representation – a circumstance rarely conducive to lasting investor confidence.

The stock took a hit, naturally. Down nearly ten percent, if I recall correctly. I wasn’t panicked, exactly. More…mildly inconvenienced. I’ve learned over the years that these dips are often opportunities, little gifts disguised as financial setbacks. Though, admittedly, my definition of a “gift” is usually something that doesn’t require me to calculate risk tolerance.