Addition of RTX and FICO ($40K+ - 20M)

Portfolio: $40K+ in equities + $4-5K cash in HYSA

AMZN: 22 shares — $5,831 AVGO: 12 shares — $5,009 TSM: 10 shares — $3,961 SPGI: 7 shares — $3,019 META: 5 shares — $3,060 (avg. $600) GE: 10 shares — $2,899 MSFT: 7 shares — $2,870 (avg. $360) NVDA: 14 shares — $2,794 CAT: 3 shares — $2,670 GOOGL: 6 shares — $2,309 GS: 2 shares — $1,848 NOC: 3 shares — $1,738

New Addition:

FICO: 1 shares — $1,040 (avg. $960)

RTX: 7 shares — $1,232 (avg. $175)

Comment:

After earnings this week, I am extremely pleased with Google over 135% gains that not to mention I sold 6 shares at 100% gains already. 25-30% gains respectively for AMZN, AVGO, CAT very good.

RTX is my first addition. Raytheon has long been viewed as a defense powerhouse because of the strength and quality of its portfolio, and it often trades at a premium relative to peers such as NOC, LTX, and GD. With military ammunition stockpiles estimated to be roughly 50% depleted, I believe replenishment demand should remain strong regardless of whether the current conflict continues or eases. That dynamic should be bullish for RTX, especially given its exposure to high-quality missiles and interceptors that are already in heavy demand. In addition, Pratt & Whitney engines provide diversification beyond pure defense, since they also serve the commercial aviation market. While the engine recalls may create short-term pressure, they still add to the overall quality of the business. Trading at 10% discount relative to fair value for Morningstar, and 30+ PE ratio it not cheap by any means, but it makes sense for the quality of the business.

FICO is my second addition. I understand that the loss of its monopoly status to VantageScore has weakened the premium valuation it once commanded when the stock traded above $2,400. However, one factor I think the market may be overlooking is how deeply embedded the FICO score is within lenders’ financial models and underwriting systems. That level of integration cannot be easily replaced, nor can a newer scoring model immediately earn the same level of trust. I also believe management has learned its lesson regarding aggressive price increases that can trigger political and regulatory backlash. This alone does not justify buying the stock, because it could still be declining. The switch for me was the earnings in Q2 2026 that to me proved ineffectiveness of VantageScore to undermine Fair Isaac business. If I look at the 52 wk lows combination of AI, competition, Iran War it roughly 10% downside to my entry point, but I see it trading roughly 1,300-1,400 that almost 30-40% upside. I like the risk to reward.

Let me know if you disagree with any of my reasoning or suggest have better picks. Thank you!

My record includes AMD ($130 -> $260), ASML ($690 -> $1400), MRVL ($60 -> $90, $70 -> $110).