Dear Plenty Community,

Just in the last newsletter, we talked about why monopolies get broken up and how Google might be next. Since then, Nvidia had a record breaking market cap drop of nearly $280B (10%+ of the total valuation), after reports of antitrust investigations. In this week’s newsletters, we’ll review what the DOJ is worried about with Nvidia. 

And in case you wanted another 3-letter acronym, the DOT (Dept of Transportation), just launched an investigation into American Airlines, Delta Air Lines, United Airlines and Southwest Airlines for “potentially deceptive” airline rewards point programs. A sizeable amount of profit is now driven by these programs supplementing a historically low margin business model. And while many consumers have hundreds, if not thousands of dollars worth of points… these points are completely unregulated… until now.

In our deep dive this week, we look into the 6 ways wealthy families money differently, including:

• Why the wealthy love debt

• Why tax planning is a friend

• How kids are an asset… financially speaking 

For this week’s podcast, we talk about the rare, unsolvable problems in life.

“For this week’s podcast, we talk about the rare, unsolvable problems in life.”For Amanda, she unexpectedly lost her husband leaving her to raise their 2 young boys alone. On this week’s Love and other assets, we talk about the financial steps she’s grateful she took and what she wishes she had known earlier. She shares lessons that she hopes can help others take steps to protect their families, especially in the face of the most unexpected.

As always, if you have ideas or questions you’d like us to answer, write in to [email protected] - I’d love to hear from you.

Cheers,

Emily

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For those that are new: 2 x 1 x 1 means

• 2 news moments in business/finance to keep you in the loop

• 1 deep dive to help you and your partner with money

• 1 tidbit for your relationship

How ~$280B went up in smoke for Nvidia

Nvidia’s growth has single handedly driven almost 30% of the S&P’s return for the year. Nvidia’s the golden child with high expectations… who keeps exceeding them. Revenue beat expectations through growth decreased from prior quarters. 

Reports leaked of a DOJ investigation into antitrust behavior (read: monopoly-like behavior that can give the government the right to break up / heavily fine Nvidia), catalyzing a dramatic sell off of Nvidia stock. Bloomberg reported DOJ concerns around incentives for buyers to exclusively sell Nvidia chips, and efforts to make it harder to change suppliers. 

Bizarrely, an Nvidia spokesperson just denied receiving any subpoena - an unexpected twist to the drop in stock price. After booming from over 18 months, investors aren’t diving back in fully. The slow price recovery is likely due to continued speculation about how quickly and how much revenue will be unlocked by other companies from the use of AI (which ultimately determines how sustainable Nvidia’s business is). 

Why the airline loyalty programs are being investigated 

As consumers increasingly build up airline point balances, these point balances have become a material part of a household's savings. While banks and investment accounts are heavily regulated, these loyalty programs are completely unregulated. As complaints have continued growing, the Department of Transportation is now stepping in to ensure that there are fair practices around the value and redemption of these points. 

And there are big dollars on the line. Delta's Amex relationship is estimated to have brought $7B in revenue by 2023. United valued it's MileagePlus program for $22B in 2020 when they used the program as collateral to secure a $5B loan. And as airlines continue exploring co-branded credit cards, savings accounts, and more, they're starting to look more like a bank than an airline.... and their profits + incentives certainly drive that.

6 ways wealthy families money differently

For generations, we were taught that working hard would be enough. But for today’s adults who lived through the 2008 recession, rising housing costs, and the pandemic, it’s clear that the old playbook is broken.

Wealthy families approach money with a different playbook—from investing in riskier opportunities, strategically using debt, and planning taxes like coupon-stacking. They also teach their kids financial lessons early and think about making money work smarter.

Down with gatekeeping! In today’s post, we explore the 6 key ways that wealthy families approach money entirely differently.

The only personality test I recommend widely

“What are my core motivations? What is my deepest fear?”

I’m a framework thinker - and personality tests have always been interesting. And after having done countless ones…. There’s just 1 I’d truly recommend to any couple to do together. The Enneagram is a personality system that breaks people down into nine different types, each based on a core motivation and fear. Take the test here (we don’t make anything from this referral).

On this week’s episode

In this episode of Love & Other Assets, Amanda shares her personal story of loss, resilience, and financial empowerment. After the sudden death of her husband, Amanda navigated the complex world of grief and finances while raising two young boys on her own.

From life insurance delays to raising financially savvy children, Amanda shares what has helped her find strength and practical don’t-wait-for-this-to-happen advice. Her journey, filled with courage and new beginnings, brings a voice to the unthinkable and reminds us of the importance of financial preparedness and community support. 

Plenty is a wealth platform helping modern couples invest and plan for their future together. We bring the investment strategies and products of the wealthy to the everyday household. Plenty was started by a husband and wife team dedicated to growing together. For more information, visit withplenty.com. If you ever have any feedback or questions, please do reach out to us at [email protected].

At Plenty, no financial topic is off-limits for modern couples. We offer straight talk and judgment-free guidance to help modern couples navigate the tricky and important intersection of money and relationships. Join thousands of couples who’ve signed up for our free newsletter today.

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