The Fourth of July Investing Lesson Most People Miss
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The Fortune That Began with an Act of Defiance
Happy Fourth of July!
Few stories capture the American entrepreneurial spirit better than Cornelius Vanderbilt’s in the early 1800s. This was at the very start of his career, before he became the railroad and shipping magnate we all know.
New York State had handed steamboat pioneer Robert Fulton and his heirs a monopoly on all steamboat traffic in state waters. No competition. No alternatives. Just Fulton’s boats, Fulton’s prices, Fulton’s rules.
Vanderbilt, at the time working for someone else, had other ideas.
He didn’t lobby the state or bribe politicians to help him change things. He simply kept running his ferry between New York and New Jersey and hoisted a flag on his ship — “New Jersey Must Be Free.” He undercut Fulton’s prices (charging $1 to Fulton’s $4) and essentially dared the authorities to stop him.
Credit: clu
The U.S. Supreme Court eventually ruled that New York’s monopoly was an unconstitutional stranglehold on interstate commerce. But by then, the monopoly was already broken as customers had increasingly cast their vote. Vanderbilt hadn’t waited for permission.
That attitude created one of the greatest wealth empires in American history. And, it’s the attitude you should still have while building your wealth and securing your financial freedom today.
And, frankly, there may not have ever been a better time to grow your wealth than right now.
A Quick Win in an AI Infrastructure Play
As you’re undoubtedly aware, the AI trade has dominated the markets since the debut of ChatGPT in November 2022.
Since then, we’ve seen some stocks skyrocket, such as Nvidia (NVDA), up more than 1,000%, and Advanced Micro Devices (AMD), up 657%, among others.
Many people are looking at their portfolio and simply can’t believe these good times can last. But investing legend Louis Navellier is confident we are still early in this bull market.
Earnings explain why.
Here is what he wrote to his Accelerated Profits subscribers earlier this week.
The current earnings environment is phenomenal, and earnings momentum will remain robust throughout 2026. FactSet currently expects the S&P 500 will achieve 27.7% average earnings growth in the first quarter – and then 19.9%, 23.2% and 20.7% average earnings growth in the second, third and fourth quarters, respectively.
For calendar year 2026, estimates call for 21%.
As you know, positive earnings surprises will likely drive these estimates even higher in the upcoming months. At the beginning of the first-quarter earnings season, analysts only expected the S&P 500 to achieve 13.1% average earnings growth. Given positive results and surprises, the S&P 500 has more than doubled this estimate.
So, again, earnings momentum is accelerating – and that means we need to remain invested in companies with stunning forecasted earnings and sales growth, positive analyst revisions and robust institutional buying pressure.
One of those companies is Seagate Technology Holdings (STX). STX develops AI-capable hard drives better than any other company.
The need for computer memory has not slowed. The training and deployment of AI models requires high-speed data, memory, and storage technologies – ideally, technologies that balance cost, performance, and scalability. That means most AI data ultimately ends up stored on hard drives, such as those developed by STX.
STX’s earnings reflect the demand for its product.
Here is how Louis summarized their outlook.
In its third quarter in fiscal year 2026, Seagate Technology reported revenue increased 44.1% year-over-year to $3.11 billion. Earnings soared 129.5% year-over-year to $934 million, or $4.10 per share.
The consensus estimate called for earnings of $3.50 per share on $2.96 billion in revenue, so Seagate Technology posted a 17.1% earnings surprise and a 5% revenue surprise.
Looking forward to the fourth quarter, Seagate Technology expects revenue of about $3.45 billion and earnings of about $5.00 per share. That represents 41.4% year-over-year revenue growth and 93.1% year-over-year earnings growth.
Thanks to the positive outlook, analysts have significantly increased fourth-quarter and full-year earnings estimates over the past month. Fourth-quarter earnings are now forecast to soar 95.4% year-over-year to $5.06 per share, and full-year 2026 earnings are expected to jump 83.7% year-over-year to $14.88 per share.
Since Louis’ recommendation, STX (in blue) has outpaced the S&P (in green) 10-to-1, and is still below Louis’ buy below price.
What Louis Worries About
Underneath all the earnings gains is a potential pitfall for investors.
Vanderbilt understood something that many investors forget: just because everyone believes something doesn’t make it true.
Everyone accepted Fulton’s monopoly as permanent, but Vanderbilt saw an opening that everyone else missed.
Today, millions of people now rely on the same Wall Street research… the same financial headlines… and increasingly, the same AI tools to tell them what to buy.
While that’s convenient, it also creates a danger.
If everyone is looking at the same information, everyone is likely reaching the same conclusions. Louis believes that’s exactly what’s beginning to happen.
In his view, AI isn’t replacing investors. It’s encouraging millions of investors to chase the same obvious opportunities at roughly the same time.
That’s why he believes the biggest advantage isn’t finding better headlines. It’s finding the signals that appear before the headlines.
That’s exactly what Louis explains in a new presentation he recently recorded.
He discusses why he believes the next phase of the AI boom may look very different from the first and why investors who simply follow AI-generated recommendations could eventually find themselves buying the same crowded stocks as everyone else.
More importantly, he explains the one signal he has relied on for more than four decades to identify opportunities before they turn into their biggest gains.
If you’re investing in AI – or simply wondering where the next great opportunities may come from – you should watch Louis’ presentation today.
You can access the presentation here.
Enjoy your weekend,
Luis Hernandez
Editor in Chief, InvestorPlace