The Nasdaq is not happy. Friday was its worst day since June, October its worst month in a year and a half, and anyone flying the AI trade just felt the airplane drop out from under them. Zero G is a thrill at an airshow. It is less fun when you are not prepared for what is coming.
As you may recall, I have written before about the concentration in technology, and it has only gotten worse. Technology is now 40% of the S&P 500. Ten companies are 38% of the index, and three of them, Nvidia, Apple and Microsoft, are more than a fifth of it by themselves. A decade ago the top ten were under 18%. When you buy “the market” today, you are mostly buying a bet on AI capital spending. I suggested then, and I believe now, that it is time to move toward the companies that will actually use these tools rather than the ones that make them. The picks and shovels have had their run. The next leg belongs to the businesses that put the tools to work, quietly widening margins and widening moats, without having to spend a hundred billion dollars a year to stay in the game.
The job of an asset allocator is to anticipate the change before it happens, or at least before it is obvious. Nobody rings a bell at the top. By the time Jim Cramer or your favorite podcaster is talking about it, the easy money has already been made. The allocator has to ignore the chatter, sift through the unloved names, and own them before the media is talking about them, not after. That is why I created the Constitution Portfolio. It owns companies that are widening their moats and lifting productivity and earnings by using AI, companies like Cintas and Public Storage.
It holds up to thirty businesses, chosen against a doctrine distilled from forty-nine years of Berkshire Hathaway shareholder letters: durable advantages, high returns on capital, owner earnings, candid management, and a price that leaves a margin of safety. AI does the reading; I make the decisions. Nothing enters or leaves the portfolio unless I am persuaded in writing.
I put my own money to work in the portfolio on day one, both to track the performance and to have skin in the game. Since its September 18 inception, my account shows an unrealized gain of 4.5% after advisory fees, with more than 30% held in cash equivalents while we wait for prices that clear the bar. Six weeks is a snapshot, not a track record, but it is an encouraging one given what the Nasdaq did over the same stretch.
The Constitution Portfolio is a single sleeve within a broader KWM offering that includes direct ownership of individual bonds, low-cost ETF portfolios, and a full menu of KWM-managed strategies. You do not have to move everything to KWM to participate. The KWM minimum investment is $1,000,000. Carve out one account or a single sleeve at that level and let it run alongside whatever you hold elsewhere. Call me at (512) 368-4593, or email scott@keelwealth.com, and we will talk.
Finally, the usual request. If you know someone sitting on a pile of AI winners and wondering what to do next, or who simply wants a second set of eyes on a portfolio, please send them my way. A short introduction by email is all it takes.
Scott Zodin, Keel Wealth Management
Important disclosures. The 4.5% figure is the unrealized gain on cost basis in a single account owned personally by Scott Zodin, for the period September 18 through October 30, 2026, as reported by the custodian. The account pays KWM’s standard advisory fee, billed monthly, on the same terms as clients, and the figure is net of fees deducted during the period. It is not a composite and is not time-weighted. It reflects a period of approximately six weeks and is not indicative of the results any client has achieved or will achieve; client results will differ due to timing of investment, taxes and account size. Approximately 30% of the account was held in cash equivalents during the period. The portfolio is concentrated and may be more volatile than a diversified index. Holdings mentioned are current as of the date of this letter and are subject to change without notice; they are not recommendations to buy or sell any security. Past performance does not guarantee future results, and investing involves risk, including possible loss of principal. Keel Wealth Management, LLC is a registered investment adviser; registration does not imply any level of skill or training. Keel Wealth Management, LLC is not affiliated with, sponsored by, or endorsed by Berkshire Hathaway Inc. or Warren E. Buffett. Index weights cited are approximate, from publicly available fund holdings data as of October 2026.
Zero G
The Nasdaq is not happy. Friday was its worst day since June, October its worst month in a year and a half, and anyone flying the AI trade just felt the airplane drop out from under them. Zero G is a thrill at an airshow. It is less fun when you are not prepared for what is coming.
As you may recall, I have written before about the concentration in technology, and it has only gotten worse. Technology is now 40% of the S&P 500. Ten companies are 38% of the index, and three of them, Nvidia, Apple and Microsoft, are more than a fifth of it by themselves. A decade ago the top ten were under 18%. When you buy “the market” today, you are mostly buying a bet on AI capital spending. I suggested then, and I believe now, that it is time to move toward the companies that will actually use these tools rather than the ones that make them. The picks and shovels have had their run. The next leg belongs to the businesses that put the tools to work, quietly widening margins and widening moats, without having to spend a hundred billion dollars a year to stay in the game.
The job of an asset allocator is to anticipate the change before it happens, or at least before it is obvious. Nobody rings a bell at the top. By the time Jim Cramer or your favorite podcaster is talking about it, the easy money has already been made. The allocator has to ignore the chatter, sift through the unloved names, and own them before the media is talking about them, not after. That is why I created the Constitution Portfolio. It owns companies that are widening their moats and lifting productivity and earnings by using AI, companies like Cintas and Public Storage.
It holds up to thirty businesses, chosen against a doctrine distilled from forty-nine years of Berkshire Hathaway shareholder letters: durable advantages, high returns on capital, owner earnings, candid management, and a price that leaves a margin of safety. AI does the reading; I make the decisions. Nothing enters or leaves the portfolio unless I am persuaded in writing.
I put my own money to work in the portfolio on day one, both to track the performance and to have skin in the game. Since its September 18 inception, my account shows an unrealized gain of 4.5% after advisory fees, with more than 30% held in cash equivalents while we wait for prices that clear the bar. Six weeks is a snapshot, not a track record, but it is an encouraging one given what the Nasdaq did over the same stretch.
The Constitution Portfolio is a single sleeve within a broader KWM offering that includes direct ownership of individual bonds, low-cost ETF portfolios, and a full menu of KWM-managed strategies. You do not have to move everything to KWM to participate. The KWM minimum investment is $1,000,000. Carve out one account or a single sleeve at that level and let it run alongside whatever you hold elsewhere. Call me at (512) 368-4593, or email scott@keelwealth.com, and we will talk.
Finally, the usual request. If you know someone sitting on a pile of AI winners and wondering what to do next, or who simply wants a second set of eyes on a portfolio, please send them my way. A short introduction by email is all it takes.
Scott Zodin, Keel Wealth Management
Important disclosures. The 4.5% figure is the unrealized gain on cost basis in a single account owned personally by Scott Zodin, for the period September 18 through October 30, 2026, as reported by the custodian. The account pays KWM’s standard advisory fee, billed monthly, on the same terms as clients, and the figure is net of fees deducted during the period. It is not a composite and is not time-weighted. It reflects a period of approximately six weeks and is not indicative of the results any client has achieved or will achieve; client results will differ due to timing of investment, taxes and account size. Approximately 30% of the account was held in cash equivalents during the period. The portfolio is concentrated and may be more volatile than a diversified index. Holdings mentioned are current as of the date of this letter and are subject to change without notice; they are not recommendations to buy or sell any security. Past performance does not guarantee future results, and investing involves risk, including possible loss of principal. Keel Wealth Management, LLC is a registered investment adviser; registration does not imply any level of skill or training. Keel Wealth Management, LLC is not affiliated with, sponsored by, or endorsed by Berkshire Hathaway Inc. or Warren E. Buffett. Index weights cited are approximate, from publicly available fund holdings data as of October 2026.
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