Every Saturday, I answer questions from readers.

They focus on real investing questions and how to think about opportunities in markets that are rarely simple.

If you’ve emailed recently, there’s a good chance your question is addressed below.

Let’s get to it.

As I look today Fannie Mae (FNMA) is around $4.25. Is it too much risk for the mission to double down or at least buy more? – Greg

Thanks for the question, Greg. The decline isn’t coming from a fundamental shift in the story. It’s coming from attention.

The market has moved onto software, geopolitics, AI while the conservatorship narrative has faded into the background.

That’s usually when these trades get interesting.

If you don’t own shares and you’re comfortable with the high-risk, high-reward nature of FNMA, I’d view this period of disinterest as a more attractive entry point – not a reason to avoid it.

Now, on doubling down.

I’m generally cautious there.

I prefer to double down on high-quality businesses that are temporarily out of favor but still have clear timelines and visibility.

Fannie Mae isn’t that. This is a policy-driven trade with an uncertain path and no defined timeline to resolution.

So my approach is simple:

If you’re underweight or didn’t build a full position, adding here to lower your cost basis makes sense.

But I’m not aggressively overweighting a name like this. The upside can be massive, but so is the uncertainty.

Thank you for giving of your time that provides such insight and education to us newbies that know enough to get us in trouble. With that being said, would you mind educating us about the Mag 7 and the tie in to their place in the AI boom? – Denise

Great question, Denise. Let’s simplify this.

The “Mag 7” refers to seven mega-cap tech companies: Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta, and Tesla.

They dominate the market not just because they’re big, but because they sit at the center of the biggest technology shift happening right now: artificial intelligence.

Here’s how they fit into the AI boom, in plain terms:

Nvidia: This is the foundation. Nvidia designs the chips that power AI models. Every time a company builds or runs an AI system, it likely uses Nvidia hardware. That’s why it’s been the biggest early winner.

Then you have Microsoft, Amazon, and Alphabet. These are the infrastructure companies.

They own the cloud platforms (Azure, AWS, Google Cloud) where AI is built and deployed. Companies don’t want to build their own data centers, so they rent computing power from these players.

They’re essentially selling “AI as a service.”

Meta fits slightly differently. It’s using AI to improve its core business (advertising). Better targeting, better engagement, more revenue.

At the same time, it’s investing heavily in open-source AI models to stay competitive.

Apple is the quiet one. It hasn’t made as much noise, but it’s integrating AI directly into iPhones, Macs, etc. Think more on-device intelligence rather than massive data centers.

Tesla is more specialized. Its version of AI is focused on self-driving cars and robotics. It’s less about chatbots and more about teaching machines to navigate the physical world.

So when people say “AI boom,” they’re really talking about an ecosystem:

• Nvidia builds the tools.

• Cloud companies provide the infrastructure.

• Apps and platforms (like Meta, Apple, Tesla) apply AI to real-world use cases.

Most brokerage accounts, if not all, are going to allocate a percentage of their positions in the SpaceX IPO. So aren't we in a general sense going to benefit somewhat once it goes public? If successful, I would think this should help our IRA's and 401(k)s for those still making contributions. – Steve

You’re thinking about it the right way, Steve.

If SpaceX goes public, it will likely end up in major indexes – possibly even fast-tracked into the Nasdaq 100.

That means index funds and ETFs will be forced to buy it, so it will naturally become part of 401(k)s and IRAs.

That creates an initial tailwind. Forced buying can push the stock higher regardless of valuation.

But there’s a flip side.

If SpaceX comes public at a rich valuation, that same demand can inflate it further. And if sentiment shifts later – whether from company news or a broader market pullback – there’s less of a natural floor, which can lead to sharper declines.

So yes, you’ll likely benefit through index exposure over time.

Just know the ride, especially early on, could be more volatile than most expect.

Are there any pre-IPOs to SpaceX that you do recommend? – David

Great question, David. There’s no perfect pre-IPO way to own SpaceX, but a few options stand out.

EchoStar (SATS) is my favorite. It owns roughly 2.5% of SpaceX through past spectrum deals. It’s not a pure play, but it is direct exposure.

Then you have names like DXYZ and XOVR, which are popular with retail investors but both come with issues.

DXYZ is a closed-end fund that often trades at a significant premium to its underlying assets, meaning you’re likely overpaying for that exposure.

XOVR has meaningful SpaceX exposure (around 38% of assets), but the stock hasn’t tracked SpaceX’s appreciation very well.

Bottom line: there’s no clean proxy. SATS is the most straightforward, while DXYZ and XOVR introduce structural drawbacks you need to be aware of.

Important Update: Follow The Million Mission on Twitter/X

Big news: I just launched a Twitter/X account so you can follow along with The Million Mission in real time. If you want quicker insights, early reactions to breaking news, and a closer look at how I’m navigating the road to $1 million – this is where I’ll be.

Come hang out, ask questions, and follow the Mission as it happens @DavisPWilson.

Another Important Update: The Million Mission website is live!

I’ve gotten plenty of feedback regarding where to find previous alerts. Well, The Million Mission website is finally live and you can check out archived alerts here.

Portfolio Overview

Here’s what I’m currently holding in The Million Mission portfolio:

Fannie Mae (FNMA) – 2,500 shares @ $7.25/share

Uber Technologies (UBER) – 200 shares @ $80/share

Nvidia (NVDA) – 200 shares @ $179/share