#54 - Betting on Boomers

Author

Graham Schroeder
April 18, 2025

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This week we cover how tech giants continue to get beat up by the government and why you should view healthcare investing differently and invest broader in the boomer generation.

Market Recap

  • U.S. Government Limits Nvidia H20 AI Chips To China

    • Nvidia $NVDA ( ▼ 2.87% ) projects a charge of up to $5.5 billion in its first-quarter results, attributed to the U.S. government's limitations on selling certain chips to China.

    • The restrictions specifically hit Nvidia's H20 chips, which are tailored for the Chinese market, potentially leading to decreased sales and market share in the region.

    • This development underscores the escalating tensions in U.S.-China tech relations and may prompt other semiconductor companies to reassess their strategies in China.

  • Google Faces Second Major Antitrust Defeat Over Digital Ads

    • A U.S. federal judge determined that Google $GOOGL ( ▼ 1.42% ) unlawfully maintained monopolies in the publisher ad server and ad exchange markets by tying its tools together, thereby harming competition and consumers.

    • The Department of Justice is seeking remedies that could force Google to divest parts of its advertising technology business, such as its Ad Manager product.

    • While acknowledging the court's decision, Google disagrees with the findings regarding its publisher tools and intends to appeal, asserting that its ad tech services are competitive and beneficial to publishers.

  • Netflix Surges After Q1 Earnings Beat and Strong Outlook

    • Netflix $NFLX ( ▲ 1.19% ) reported Q1 2025 revenue of $10.54 billion and earnings per share of $6.61, surpassing analyst forecasts and boosting shares over 4% in after-hours trading.

    • The company projects Q2 revenue of $11.04 billion and maintains its annual forecast of $43.5–$44.5 billion, driven by subscriber growth, price increases, and expanding ad revenue.

    • Co-founder Reed Hastings transitioned from executive chairman to non-executive chair, marking a planned evolution in Netflix's leadership structure.

Big Tech Has Spent Billions Acquiring AI Smart Home Startups

The pattern is clear: when innovative companies successfully integrate AI into everyday products, tech giants pay billions to acquire them.

Google paid $3.2B for Nest.
Amazon spent $1.2B on Ring.
Generac spent $770M on EcoBee.

Now, a new AI-powered smart home company is following their exact path to acquisition—but is still available to everyday investors at just $1.90 per share.

With proprietary technology that connects window coverings to all major AI ecosystems, this startup has achieved what big tech wants most: seamless AI integration into daily home life.

Over 10 patents, 200% year-over-year growth, and a forecast to 5x revenue this year — this company is moving fast to seize the smart home opportunity.

The acquisition pattern is predictable. The opportunity to get in before it happens is not.

Past performance is not indicative of future results. Email may contain forward-looking statements. See US Offering for details. Informational purposes only.

Freedom Fund Portfolio

Freedom Fund Background: I created the Freedom Fund as a public brokerage account back in October of 2022 to share that anyone with a social security # and a bank account can begin their investing journey by investing a couple hundred dollars a week. Every week and month I post on X (@GrahamInvesting) public updates about the purchases, exits, dividends, and growth of the fund if you want to follow in real time. The biggest obstacle people have to investing is just getting started so I decided to start a new account at $0 to start from nothing with you.

A Long-Term REIT Play on America’s Aging Future

You may notice two things about my public Freedom Fund over the course of the year if you analyzed my diversification. First, I really like real estate investment trusts (REITs). Second, I have zero exposure in the healthcare sector. For the longest time I could not figure out a single play to pick in the healthcare sector until now. Do I take a stab at fat loss medicine, surgical technology, or a health insurance system? None really stuck out to me until I started researching a company called Welltower.

Today I am going to break down why I just started a new position in Welltower $WELL ( ▲ 1.13% ) an established REIT publicly traded since 1984. On Wednesday I opened a position of (4) shares into $WELL ( ▲ 1.13% ) . And although this REIT is surfacing all-time highs I still feel comfortable in the long term growth prospectus to continue to add lower and higher going into the next decade.

Company Overview

  • Welltower specializes in healthcare infrastructure, with a main focus on senior housing, outpatient medical centers, and care facilities. The company operates 1,500+ senior and wellness facilities across the United States, Canada, and the United Kingdom.

  • In fiscal year 2024, the company reported revenue of $7.93 billion with a strong 29.18% year-over-year growth increase driven by growth in its senior housing portfolio and strategic acquisitions.

  • In 2024 they reported a a gross profit of $3.151 billion, marking a 17.55% increase from the previous year. Net income attributable to common stockholders was $951.7 million, or $1.57 per diluted share, up from $340.1 million ($0.66 per share) in 2023.

  • The companies consolidated portfolio comprised 2,119 properties across three primary segments:​ Seniors Housing Operating: 1,156 properties, contributing 53.7% of net operating income (NOI).​ Triple-Net: 592 properties, accounting for 26.6% of NOI.​ Outpatient Medical: 371 properties, representing 19.7% of NOI

  • $WELL ( ▲ 1.13% ) produces a quarterly dividend backed by defensive assets with long-term tailwinds. Even though it currently sits below a 2% annual dividend yield, I believe they are going to become one of the more resilient and growth-oriented REITs for the future.

Aging American Population

Baby Boomer Wealth and the Great Wealth Transfer

  • Baby Boomers currently control around $100+ trillion, or over 60% of total U.S. household wealth. The largest wealth transfer in history, with an estimated $84 trillion expected to pass to Gen X and Millennials by 2045.

  • But here's the key: A large share of that wealth will first be spent on elder care, housing, and health services before it’s ever inherited. Boomers hold a significant portion of the nation's wealth, and a lot of it will be given to healthcare expenses over the next 20-30 years.

  • Welltower is positioned to capture the liquidity of a financially powerful generation before the wealth transfer even happens.

Evolving Family Structures and Care Needs

  • Modern family dynamics have changed with more families spread out geographically. In countries outside the U.S. the youth typically take care of their aging family members and live with them. However, that is not the case within our country dynamics. With social media, education, and career ambition in our capitalistic society our generations are more mobile than ever before.

  • This dispersion increases the reliance on professional senior living facilities and healthcare services where Welltower has a strong presence for the future.

Welltower isn’t just a real estate company. It’s a platform built for the 21st-century longevity economy and one of the clearest long-term bets on global aging. As technology and pharmaceuticals continues to rapidly change and develop in our life picking one winning tech or pharma company is very difficult. The unknowns of how A.I. could reveal tons of unknown health research and cures. Instead of picking one technology or one medicine to invest in, I have decided to start building a position in a company that captures the entire sector in a bucket via the property healthcare and health services will take place in.

The purpose of this newsletter is to encourage you and our other 86 Gazette subscribers to start and stay consistent with your personal, professional, and financial journey.

Thanks for investing your time reading this.

Disclaimer: Graham’s Gazette provides information and resources related to investing, financial topics, and personal growth for educational and entertainment purposes only. The content presented is not intended to be construed as financial advice. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial decisions. Graham’s Gazette and its creators do not assume any responsibility for the accuracy or completeness of the information provided nor do they guarantee any specific results from such use of information.