Keith Fitz-Gerald, principal at the Fitz-Gerald Group, has outlined his high-conviction investing philosophy centered on owning only the market’s best companies and ignoring the rest.
Fitz-Gerald’s core argument draws on a striking historical data point: just 3.7% of all companies have generated 100% of the net wealth created in the U.S. stock market over the past 100 years.
That statistic challenges the conventional wisdom of broad diversification, suggesting that concentrating capital in a handful of exceptional businesses is the more effective long-term strategy.
NVIDIA Corporation (NASDAQ: NVDA), which Fitz-Gerald describes as arguably the most important company in the world right now, is set to report earnings this week amid enormous investor anticipation.
The chipmaker recently partnered with major Wall Street firms to create a new $500 billion financing machine for AI chips, deepening its already dominant position across the artificial intelligence ecosystem.
NVIDIA also holds equity investments in several companies throughout the AI supply chain, a form of financial engineering that could help sustain the current AI investment cycle well into the future.
Critics have raised concerns about GPU depreciation risk and circular financing, leaving open the question of whether NVIDIA can maintain its status as the undisputed leader in AI infrastructure.
Palantir Technologies (NASDAQ: PLTR) delivered a standout quarter, with revenue nearly doubling in the second quarter, prompting the company to raise its full-year revenue outlook following what CEO Alex Karp described as “otherworldly” results.
The stock surged almost 40% following that earnings report, reflecting the market’s growing confidence in Palantir’s ability to capture enterprise and government AI spending at scale.
CrowdStrike (NASDAQ: CRWD) sold off earlier this year alongside other cybersecurity names amid fears that rapid advances in AI could disrupt traditional security software business models.
Shares later rebounded as investors began to recognize that AI is more likely to expand the long-term cybersecurity opportunity than eliminate it, restoring confidence in CrowdStrike’s competitive positioning.
Apple Inc. (NASDAQ: AAPL) briefly claimed the title of the world’s most valuable publicly traded company from NVIDIA earlier this year, making it the best-performing Magnificent Seven stock over that stretch.
However, Apple’s shares have since declined following underwhelming results, raising questions about the near-term growth trajectory for the consumer technology giant.
Tesla (NASDAQ: TSLA) also featured in the discussion, with Fitz-Gerald examining whether investors should continue to believe in the companies tied to Elon Musk given the broader volatility surrounding those names.
Fitz-Gerald’s investment philosophy is embedded directly into two exchange-traded funds: the Fitz-Gerald Must Have Portfolio ETF (FITZ) and the Fitz-Gerald Must Have Portfolio and Options Overlay ETF (FIZY), both of which invest in high-conviction holdings.
FIZY distinguishes itself by layering an options strategy on top of the core portfolio, a structure specifically designed to generate monthly cash distributions for income-oriented investors.
The broader question hanging over all of these positions is whether the AI trade, which has driven enormous gains across several of these names, can continue to sustain its momentum for much longer.
