It feels increasingly difficult to make good and unique investments when the only thing actually moving the needle for the S&P 500 and other indexes is bascially just AI and anything related to it. For value focuesd businesses whith thriving financials, their price has either gone nowhere or fallen these past months.

For a company like ours (Furatena), this very unique moment in the market creates a very good opportunity for us to find and create unique and creative investments across different domains.

That bring’s us to what we have created today.

We call it “The Luxury is Now Cheap” Portfolio.

Now what does this portfolio include?

It includes businesses that sell products or services, almost exclusively, to the highest income individuals across the world.

These companies own the most famous luxury brands in the world, which we all know, but can’t really afford: Louis Voutton, Gucci, Dior, Hermes etc…

Before going over the portfolio and each pick, I want to answer a question you might be wondering. Why create a portfolio like this?

Well, like I said before the market is at ATH but a lot of good stocks are currently down.

The luxury industry as a whole seems to be down mainly do to inflation fears, oil and gas prices, problems with international exports, and lower consumer sentiment.

But, a lot of these brands have existed for entire centuries, catering to the ever present highest earning costumers. Since the begenning of capitalism, the small percentage of people in any advanced population, that get to a high net worth or ultra high net worht status is very very low. But the amount of momey they spend on consumer discretionary or luxury items, is disproportionately high.

That brings us to our first pick, the biggest holding, and the company which inspired us to create this portfolio:

Hermès ($HESAY $181.42/share)

You probably know Hermès from a famous celebrity posting with a prodcut or box with their logo, or from the very famous and very cited “Birkin Bag”.

But if you are anything like us then you had never seen Hermès’ stock or even knew they where public, so you can probably feel the same suprise when finding out the Hermès has a $300 Billion dollar valuation!?!?

It’s worth more than Uber AND Spotify COMBINED!

A company that sells expensive bags for women and other leather products, is worth more than two of the most used apps of the entire world put together.

Now aside from their very impressive size we saw the equally impressive price:

Their stock had gone from $288/share to $181/share. An insane discount for such a huge and old company (founded in 1837).

This is what inspired us to make this portfolio. Luxury brands like Hermès have had insane pricing power for many decades now. If they decide to raise the price of a birkin bag from $25,000 to $35,000 they will still have more demand than supply.

I like this company because it might not be the most objectively highest of quality, or even the most efficient or well known brand. But they have such a strong positioning inside the world of high net worth individuals which lets them sell a variety of products, all at very high prices creating insane margins and a very strong pricing power.

If Hermès continues to grow earnings at a conservative rate, then the stock can grow more than 30% or 40% back to all time highs.

Our second holding is:

Ferrari ($RACE $346.45/share)

This one is a little self explanatory.

Everybody knows Ferrari, they make cool and expensive cars.

Insane margins, demand is always higher than supply, decades of heritage…

Like the others it has had a price decline this last year, but it’s not only thanks to inflation or consumer sentiment, but some… questionable decisions from their part.

Nevertheless, Ferrari will contiue to sell expensive cars for many years to come.

It could offer a 60% return when it goes back to all time highs.

Our third holding is a company I like because it basically acts like it’s own luxury business portfolio:

LVMH ($LVMUY $106.81/share)

You may know LVMH because of Louis Vuitton, but what many people don’t realize is that LVMH owns a huge collection of some of the most powerful luxury brands in the world: Dior, Louis Vuitton, Tiffany & Co., Bulgari, Sephora, Fendi, Celine, Loewe, Hennessy, Moët & Chandon, and many more.

So instead of buying only one luxury brand, with LVMH you are buying a whole empire of luxury, fashion, jewelry, cosmetics, wines, and spirits.

The stock has also fallen from around $187/share to $106/share, which is a very large drop for one of the highest-quality luxury groups in the world.

If the luxury market recovers and investors become more optimistic again, LVMH could have a very attractive upside from these levels.

Our fourth holding is

Richemont ($CFRUY $20.74/share)

Another luxury group, but with a much stronger focus on jewelry and watches.

You probably know some of their brands without even knowing Richemont owns them. Their most famous brand is Cartier, one of the most iconic jewelry and watch brands in the world. They also own Van Cleef & Arpels, IWC, Panerai, Jaeger-LeCoultre, and other very respected luxury watchmakers.

I like Richemont because jewelry and watches are very different from regular fashion.

These products are not only bought as fashion items. Many people buy them as status symbols, gifts, family pieces, and even as stores of value.

That gives Richemont a very strong position in the luxury market. It is not as diversified as LVMH, but it has some of the best brands in the jewelry and watch category.

The stock has fallen from around 6% from $20.74 to $20.52, so it is not as heavily discounted as some of the others, but we still like it because of the quality of the brands behind the company.

Richemont gives this portfolio exposure to the more jewelry-focused side of luxury, especially through Cartier and Van Cleef, which are two of the strongest names in the entire industry.

Our fifth holding is:

Christian Dior ($CHDRY $133.50/share)

Most people know Dior because of its perfumes, handbags, clothes, and the very famous Dior logo. It is one of the most recognizable luxury brands in the world.

Dior is similar to Hermès and different to the other positions because it is an independent fashion house, which never got aquired or merged, so it has re invested their profits for decades, and Dior as a brand has very strong pricing power too.

The stock has gone down 25% from it’s most recent 52 week high, but it still gives us exposure to one of the most powerful names in luxury.

I like Dior because it combines brand prestige, history, fashion influence, and ownership structure in a way that makes it more than just a clothing company.

Our sixth holding is:

Kering ($PPRUY $28.29/share)

Our final holding is Kering, the company behind Gucci, Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen.

Kering is the riskier position in the portfolio because Gucci has been struggling, and Gucci is a huge part of the company. But that is also what makes it interesting.

The stock has been heavily punished, and if Gucci can recover with better execution and stronger creative direction, Kering could have meaningful upside.

So we see Kering as the turnaround play of the portfolio: higher risk, but also higher potential reward.

Now this is how all the positions look put together into the luxury portfolio:

I personally like this portfolio alot because it offers exposure to one of the world’s strongest industries in terms of pricing power and historical growth.

Led by Hermès and Ferrari which seem to have had a very overblown price decline, which could give their stock a very strong recovery.

Remember that this is not financial advice nor an official acknoledgement from Furatena towards any of the companies mentioned. Please invest at your own risk.

Go to our website and subscribe to Furatena Research in order to have access to every portfolio and trade we have ever created, or if you want to see exactly how this portfolio performs in the future.

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is down more than 35% from it’s all time highs.

At 82 dollars a share is one of, if not the best opportunity in the market right now.

It has a trailing P/E of 26. Down heavily from historical avarages.

If Netflix continues with this P/E and grows earnings at 12% for the next year, which i…

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3. Uber (at $71.82/share)

Uber under $80/share is a tremendous bargain in our opinion. Easily one of the best bargains in the entire market currently.

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We did this by using a basic stock screener tool which your broker probably offers, they are also available free online.

The settings for our screener are incredibly simple, but surprisingly effective.

“The Furatena Signal” as we call it, is a very powerful way to see companies that might be objectively underpriced in some way. What it let’s you do after, is make your own subjective decisions on which companies are actually decently undervalued, or which companies are actually worth an investment at these prices.

The decision to invest in a company found on the screener should not be one taken purely from factual data and technical signals, it should be a personal and subjective decision based on your own knowledege and assumptions about the company and its future.

I want to talk about subjectivity in investing for a second.

What determines a stock price?

I mean we all know that stocks are companies which have revenues and pay dividends and have different growth rates and so on and so forth.

But that information alone does not determine the price of the stock at every given moment. A stock with a $100 billion market cap and $5 billion in earnings, might have a market cap of $98 Billion the next day.

What happened between one day and the next?

Did the company suddenly lose $2 billion in value?

Well, this type of sudden price move without any significant change on the companies fundamentals is only thanks to one thing: Subjectivity.

If one stock is currently losing clients because of Ai, the price will fall due to heavy risk on their business, but then a stock with a similar but not entirely correlated business model, might also see a price decline, even if their business hasn’t been affected by Ai in the slightest.

Why? Because people are subjective. They often make decisions using their emotions instead of facts. Humans have a tendency to trust their intuition even more than what they might be seeing with their own two eyes.

But for a stock worth billions of dollars, to have the stock price crash, is not thanks to a handful of individuals being guided by emotions, it shows the overall avarage of thousands of people’s emotional response to the most recent events. Meaning, even tho the objective data is publicly free for everybody to see, people still will make their decision based on short term emotional reasoning.

This is not a flaw in financial markets, I would argue it is it’s best feature.

Thanks to the ocasionaly unreasonable emotional judgement from thousands of individuals, amazing stocks are often priced below their intrinsic value for no real reason.

That’s where we come in…

We have The Furatena Signal as a spreadsheet included in our subscription, but you could create the same effect using any free stock screener available on Google, just by adjusting the settings the same way we do.

Like I said before The Furatena Signal is incredibly simple but surprisingly effective, and heres how we do it:

First choose the 3-month stock price change, as the first setting, set it to Down by more than -10%.

Then adjust the screener’s sorting by setting it to: Market Cap High → Low.

And, that’s it.

Now what does this tell you? All the stocks that have recently come down enough that they might be undervalued.

What we do next is simply scroll and look for the companies which we personally recognize and know are good.

Take a look:

If we use the signal today May 19th, 2026. We can see some amazing and well known companies which have recently had a price decline. Tencent, Alibaba, Toyota, General Electric, Home Depot, McDonalds, Blackstone, Lockheed Martin (if you like war), Mercado Libre (which we did an analysis on and turns out it might be very undervalued), Nintendo, Mercedez, Chipotle, and many many more.

What we do is take this list of the companies which we know are good and people like, and then check their financials to see which ones are actually down by more than they technically should. Then we look at the reasons it’s down: any discrepancy in their earnings, what’s on the news, maybe it’s related to something macro economic or geopolitical…

When we gather both the fundamentals, and then the reasons for which it’s down, we then can make our own decision which is half objective and half subjective, determining weather the stock is a good investment or not.

So, that is basically our Furatena Signal, and a very oversimplified description of our investment process.

Stay tuned for our personal list of the top stocks which we have found using the signal.

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For this reason, we decided to build a model portfolio allocation using only these 7 stocks.

This is not a diversified portfolio recommendation. …

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This will be a 3 stock “Portfolio” or “Trade” however you want to call it.

The three major companies which handle credit and debit card payments in the US, have a very interesting discount.

The first one and biggest holding is Mastercard ($505/Share)

All data taken from our Investment Analysis Spreadsheet (Included in our subscription)

Mastercard is a global payments network. They connect banks, merchants, and cardholders so electronic payments can be authorized, cleared, and settled, earning fees from each transaction.

If you are trying to measure regulatory risk, stablecoins, inflation, credit instability, etc… then there might be a lot to analyze.

But if you are a long term focused investor, then there isn’t much to see here…

This is a company that has near perfect earnings, dividends and buybacks, manageble debt with enough cash…

The recent downturn is a combination of the risks prior mentioned, but not a single relevant part of their earnings has been affected.

They still have incredible growth shown on the latest quarters year-over-year:

Their valuation is what’s extremely compelling.

Mastercard is at its cheapest P/E since 2022, where the stock price hit its 5 year low and rebounded more than 100% to recent all time highs.

Qualtrim

We decided to allocate 40% of this investment into Mastercard at $505 a share.

The scond holding is American Express ($312/share)

American Express is a different story because it’s main business is not purely payment processing. They are a payments and credit card company, American Express issues cards directly to customers, processes payments through its own network, and earns money from merchant fees, cardholder fees, interest income, and rewards-driven premium spending.

is down around 20% from all time highs.

Their business faces similar risks as Mastercard: Regulatory concerns on credit cards, credit risk, inflation and interest rates…

Lets look at their earnings:

We can’t see Operating Income because reports it a differetn way. (We are working on it)

We can see that they have good earnings aswell, but not ass good as Mastercard’s.

Their revenue and net income has not been growing at a crazy pace the last 10 quarters but it has been growing non the less.

Their EPS is also growing thanks to their historical buybacks.

What I think is most interesting about this stock is the ratios:

Their Price to Earnings ratio is down a good amount, but is still higher than a few years ago around 2023 and 2022.

This is due to the earnings slowdown the company had these years. Taking it to a valuation similar of a major bank at around a 13 p/e. Although American Express is technicaly a bank too, their main business is debit/credit cards and payment processing.

This stock is not as much as a no brainer as Mastercard, but if you like a stock with good historical earnings, continuous buybacks and increasing dividends, and a recently discounted price, then American Express might be a good buy to hold until a more reasonable valuation.

That’s why we decided to allocate 35% of this investment into at $312 a share.

The third and last holding is Visa ($332/share)

Visa gets us right back into Mastercard territory, but at a slightly less atractive price. These two are the worlds biggest payment processors. Nearly every card you and me own has either Mastercard or Visa on it.

Their stock prices often move very similarly since they are affected by the same external risks.

So we’ll just get straight into their financials:

Again we can see so clearly the amazing quality of this business. Just constant year over year growth + capital returned to investors. What else could you possibly need from a stock?

Finally lets look at the price and valuation:

Similar to Mastercard, Visa’s price to earnings ratio is down to levels not seen since 2022, where it then proceeded to jump more than 100% to the most recent all time highs.

If it goes from it’s current market cap of $630 Billion to $700 Billion it could mean an easy 11% on this investment.

We decided to allocate 25% of this investment inot at $332 a share.

This is the full trade:

Check out our Furatena Matrix spreadsheet included with our subscription, to track the perfromance of this investment day by day.

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Eventually, regulators and exchanges, particularly the COMEX, changed margin requirements and imposed trading restrictions, limiting new buy positions to sell-only orders, and there was a massive liquidity event where silver came crashing down and the futures contracts the Hunt brothers held were liquidated, taking the price of the commodity into freefall.

This was unique because it was the only time in history where silver rose to such ridiculously high prices… of course, until last year.

Silver, paired with gold, is treated as a safe and stable commodity in today’s market. They are assets people go to in times of uncertainty and risk. In 2025, silver rose to more than $70 an ounce for the first time in history… for “unknown” reasons…

But that meant that silver was now at a price it had never been at in history. Silver normally stays at a stable price because it is a metal that works for certain products and operations, but historically never has much growth unless sentiment changes quickly and drastically, which is almost always followed by a counter-opposite, quick, and drastic drop.

But putting that aside for now… if you had shorted silver,

which means borrowed shares instead of buying them in order to profit if the stock goes down.

So shorted every single time that the price went up from the historical average, or had any major rally really, you would have made money.

The reality is that due to the mechanics of short selling: borrowing money, which means paying interest; often leveraging positions where you are betting more money than you have; and having your max gain capped at 100%, but your max loss could be theoretically infinite. Meaning you can end up losing all your money and then owing more on top.

Why is this a thing?

You are putting yourself at outsized risk in order to make a good but limited gain, negatively contributing to the market, hoping for the worst outcome possible, which would make you the most money but potentially hurt people’s lives, and it’s the complete opposite of an already great investment practice, which is buying shares in the open market with the hopes that companies and the people that run them continue to do good.

In the Book of Genesis (Genesis 4:8), Cain, son of Eve, grabs a boulder and strikes his brother Abel, committing the first murder in history, because he did not want to accept that God favored Abel’s offering over his own and instead chose jealousy and pride over correction.

Cain took outsized risk, losing a brother, facing retaliation from his parents, judgment from God, and the possibility of being killed himself.

All for the limited return of removing his rival and attempting to eliminate the source of his resentment…

It seems like whenever people are presented with the opportunity to benefit from others’ misfortune, there is always somebody who will act on it.

So, That throws a very important question in the air: Is short selling worse than murder?

It actually could have been for our portfolio.

On December 29, 2025, we took a short position on the price of silver at $73 an oz. When I mean “we,” I mean the actively managed investment portfolio from our company, Furatena.

We bought several out-of-the-money put contracts expiring in January 2028. We wanted a far expiration for safety.

Fortunately, we bought put options with cash instead of short selling shares with margin, which could have gotten us margin-called, because if you paid any attention to financial markets in late 2025 and early 2026, you most definitely know of the massive run that gold and silver had… the next two months. Reaching more than $100 an ounce for the first time in history, a number that was completely unheard of before for silver.

It was as if we predicted the exact moment it would go up 40%.

I mean, we bought at a pretty high price already, and there had just been a headline that COMEX was going to limit margin and liquidity. Now remember when we talked about the Hunt brothers? This was exactly what happened to them. When COMEX did this exact thing, it was almost the exact top.

But no, the price went up +40%, and our portfolio took a pretty big hit.

This just proves once more one of the golden rules of investing: past performance does not guarantee future results!

But, since we didn’t borrow shares, but instead bought put contracts, we could theoretically wait it out until 2028 and see if it comes down.

And even though we were in the red, our thesis for the investment remained strong: gold is a precious metal whose price is determined primarily by whatever price people decide to pay in the open markets… and jewelry prices. But silver is a precious metal that doesn’t have the same “so valuable it goes in a safe” vibe. Plus, it has actual operational functions in many industries. So when markets get into this extreme uncertainty and need-for-safety mode, gold might be a hard asset to question due to its historical sentimental human value. But silver isn’t stable enough to be at such high prices, especially considering that most of the silver buying is done through leveraged futures contracts, which can easily implode and cause major margin events if the price were to move the other way.

So, we painfully waited it out for a couple more months until March 19, when the price came back down below our buying price, and we successfully closed our trade, making a roughly 30% return in less than 3 months.

I still believe the price will go back down to around $40, but as of right now, it’s still around the same area we sold it in, and we just felt like that return was good enough and was not worth the risk of continuing to hold.

I remember that day very vividly because it was very early in the open, the price was moving really fast, and the moment we had predicted would happen had actually happened, relatively fast. I also remember it very well because if we had sold just a few hours later, our profit could have been at least double, but honestly, I was just happy to remove the outsized stress that position had put on me and was very happy with the return.

It was also the day we officially became a successful “short seller,” after one trade. I mean, our company is fairly young, and our portfolio’s main target is long-term compounding. We focus on picking the best stocks to buy and hold long term, not short-term trades. But the price of this commodity had just been too crazy and was one of those investments that just sits in the back of your mind bugging you until you actually do it because you know for a fact it’s going to play out your way.

Trust me, it was discouraging logging into X and Reddit to see any new info on silver, and all the comments talked about how the price was reaching $1,000 an ounce by the end of 2026, and anyone who was shorting it was dumb and just “trying to be different.”

Going against what the majority of people think and want to happen is not something easy to do.

Warren Buffett clip on shorting

In early 2025, the shares of Opendoor Technologies shot up due to a meme stock–style frenzy.

The company had negative earnings and weak fundamentals, and it had gone way above its estimated intrinsic value—it looked like a bad investment and a very easy short. It had run up to around $3–$4 per share, implying an effectively meaningless P/E, since it wasn’t profitable, for a company still struggling to generate consistent profits, so it seemed obvious it would come crashing down.

Well, no—over the next few weeks, fueled by retail momentum and high short interest, it pushed even higher, roughly another 50–100% from already elevated levels, making many short positions implode. And then it proceeded to, inevitably and violently, come crashing down.

We saw this unfold day by day and thought, wow, if we just bought put options again, we could make so much money almost guaranteed. I mean, most meme stocks eventually deviate so far from their fundamentals that it’s almost certain that they will eventually return to reality.

These types of investments happen again and again in many different forms. They all share the same characteristic of having no real value, and they always come crashing down, losing hundreds of people’s hard-earned money, which they were trying to invest in order to achieve a better life for themselves and their families.

Why didn’t we take the short? It was almost guaranteed.

The thing is, when a group of individuals unite in a mission they truly believe to be correct and imperative, then there are no ends to their delusion. There is no voice of reason that could contradict what they believe to be true.

They will find the way to either achieve their most ambitious goals or violently crash down.

Go big or go home, I guess that’s the lesson here.

Unless you are short selling, because you can’t really go big when you can only make a limited amount, but you most definitely can go home.

Ughh meme.

Please always remember that the market can remain irrational far longer than you can remain solvent.

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Roblox is a very interesting stock because it is very hard to actually understand the scale of their business. They have more than 120 Million daily players, and those players make millions of in game transactions, buying their in-game currency “Robux”.

Roblox went from almost being a $100 Billion dollar company, back to a $30 Billion makret cap. A gigantic drop.

Is this discount justified? Let’s see:

Roblox’s problem is profitability and lawsuits.

Revenues keep rising but net income doesn’t seem to follow.

They have good free cashflow but it’s heavily affected by their dare I say excessive stock based comp.

I think the problem with Roblox is they have an insanely well known and recurring product, basically unaffected by inflation or most external factors.

When their growth gets back on track their stock price rises massively, when growth slows down and profitability seems less likely, then the stock price crashes.

I think Roblox has such a good product that they shouldn’t struggle to be profitable 10 years from now.

Since IPO it has risen more than 100% multiple times, and it is currently below their IPO price (2021).

We think at $30 Billion, it wouldn’t be surpising for this stock to rise to $50 or even $100 Billion in the next 1-2 years.

This is not financial advice, nor an official buy or sell recommendation.

Remember to invest considering your own risk parameters, and please subscribe to our newsletter for more posts like this!

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These are their most recent quarterly earnings reports taken from the SEC through our investment analysis spreadsheet:

There is one square empty because it tracks dividend payments, but does not pay a dividend.

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Okay, so this is random as shit, but you’re probably familiar with stock options, but not the kind Elon gets for no reason.

I’m talking about stock option contracts.

Stock option contracts are financial instruments derived from an underlying stock. They are basically contracts between two parties agreeing to buy and sell at a specific price and date. But each contract represents 100 shares of stock, so they are insanely levered up.

Now, there is A LOT you can do with options. You can buy a call, sell a call, buy a put, or sell a put. You can sell a call and buy a further-expiring one, and that makes a credit spread. If you do the opposite of that, that’s a debit spread. You can do a strangle, which is buying a call and buying a put at different strikes, but you can also do a straddle, which is buying a call and a put at the same strike.

There’s something called an Iron Condor. I have no idea what that means or how it works, but I do know what it does, and it’s pretty interesting. You can basically bet that the price of a security will remain within a certain range, and if it does, you get paid.

I find the debit spread very interesting too, but in a more degenerate way. Let’s do an example.

Let’s say Uber is at $75 per share right now, which it is, because it’s had a big decline recently, but the fundamentals of the business are still perfectly sound, and you believe that the price is bound to go back up in the next months.

What you would do, if you were an intelligent investor who prioritized risk management and intrinsic value, is to simply buy shares and hold them until the price hits your maximum value. Or, if you were an even better investor, you could sell put options for a price slightly below current, which means you get paid around 0.5% to 2% in premium, and if the price hits your lower target, then you automatically buy the shares at a higher value per dollar and still wait for them to hit your target price and sell then.

But that’s not degenerate enough.

What you can do with a debit spread is you buy a call in the money and then sell a call out of the money at a higher expiration. Both with the same strike. That creates a debit spread. You pay a premium, and now you have basically created your own roulette table.

If the price rises even a little bit, your spread expires in a 100% gain, and if you are wrong even by a little bit, you end in a 100% loss. Basically, you are betting on red or black. But the craziest part is, the odds might actually be in your favor.

Because let’s look at this this way. Uber has dropped 30% from its all-time highs. Its price-to-earnings ratio is the lowest it has been since its IPO, and its free cash flow yield is one of the highest since its IPO. All their fundamentals are holding very strong, and you, me, and everybody else will continue to use Uber and Uber Eats.

So, it is kind of a no-brainer to say that it will eventually move up from its current price. And if that turns out to be the case, then you just doubled your money.

So, if you play this strategy right, you can actually create a red-or-black roulette table, but the odds are set by you and the market.

Okay, now why am I talking about this? If you’re even a slightly sophisticated investor, you are probably familiar with all of this.

Well, there is this very specific options “strategy” which I find so incredibly fascinating and, at the same time, incredibly useless, that I just felt this is what the first long post for our investments and financial media/services company, Furatena, should be.

I am talking about box spreads.

A box spread, specifically a credit box spread, means you sell a call spread and sell a put spread at the same strike and expiration. You then receive money now and owe a fixed amount at expiration, like a loan.

Let’s do an example.

Let’s say you sell a $75 Uber call for +$4.35, you buy a $79 call for -$2.58, you sell a $79 put for +$7.00, and you buy a $75 put for -$5.00.

What happens after is you receive a credit of $377, and you have to repay $400 at expiration. You’ve just created money out of thin air and borrowed at the risk-free rate, which is around 4%. And there is virtually zero risk because all the options cancel each other out. So, it does not matter where the stock moves; your position remains the same.

Amazing, right?

Borrowing money at the lowest possible rate, straight from the market, with no need for credit checks, interviews, or audits. This is what you would call a synthetic loan.

If right now you’re thinking, “That seems too good to be true,” it’s because it is.

Not because you are not able to do it. You absolutely can, and you will get credited that money to your account. But the problem lies within the fact that the broker will not let you touch that money.

They don’t let you buy stocks with it. It doesn’t count as equity in your account. You can’t use it as collateral. You can’t even move it, store it, or anything. The only thing they let you do is look at it. That’s it. That’s all you can do. Borrow money, use it for absolutely nothing, and then return it while paying interest on top.

So... why is this a thing? This seems like the most useless and nonsensical investment you can do with your money. I wouldn’t even call it an investment; it just seems like a waste of time. It feels like the time I spent researching this, learning about this, and then the time you spent listening to me talk about it served no purpose.

Well, okay, it’s not completely useless... for big institutions, of course. If you have a $500 million fund with a personal relationship with your prime broker at Goldman Sachs or UBS, they will, in fact, let you do this strategy and actually use that money for trading. Seems... unfair. They get to borrow money whenever they want, at the lowest rate, and use it for whatever they want.

I do have to say, I don’t believe it is totally unfair, since these institutions have much better credit than your average Robinhood trader. But that does not mean they can’t engage in unheard-of levels of degeneracy and completely obliterate their investors’ money.

But still, the fact is that in financial markets, whether you like it or not, whether you realize it or not, the big guys will always have an advantage.

Since we are not able to use these kinds of strategies yet, the team here at Furatena is working very hard day by day on perfecting our abilities to find the best undervalued assets and hold them long term. That’s basically all we do. We try our best to find the best undervalued stocks each month and then analyze them deeply to see if they are a worthwhile investment, with the overall goal of outperformance.

So, it’s only a matter of a couple of years, and we will be under the AUM threshold for these prime broker relationships. When that happens, we will not only be talking about these kinds of options strategies; we will be actually using them.

Thank you for watching, and click the link in our bio if you want to access our stock research or if you want to invest with us.

Nothing seen here should be considered financial advice, and please, do not do a box spread. You will waste your time.

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During our routine market checks for undervalued companies, we came across Mercado Libre. They are a major Latin American platform for online shopping and digital payments, similar to Amazon, founded in Argentina. Their stock has dropped 8% year-to-date, and around 30% from all-time highs.

Charts and data taken directly from our Stock Analysis Spreadsheet. This spreadsheet and two others are included in the paid version of our Substack.

While it’s not particularly “cheap”, considering each share costs $1,850 (May 1, 2026), and its ratios are also relatively high, Mercado Libre could be an interesting opportunity if we look at its past valuations and the reasons behind its price decline.

The most interesting chart for this stock comes from a metric we normally wouldn’t use as our first choice for valuation, but it shows a really interesting story for this company:

Qualtrim Chart:

Mercado Libre’s price-to-sales ratio is the lowest it has ever been, meaning it offers the most revenue per share in its history at this current price.

But P/S doesn’t tell us the whole story.

Let’s look at the big one:

Qualtrim Chart:

Again, it’s not what you would normally call “cheap”, having a price-to-earnings ratio around 45. But we are not trying to find the cheapest companies; we try to find the most undervalued companies, and undervaluation comes from a comparison of historical prices and current intrinsic value.

We can see that their P/E ratio is also around the lowest in 3 years.

Now why have their multiples compressed this much? Was it from a slowdown in revenue?

These are their latest quarterly revenues:

Doesn’t seem like there is any sign of slowing down, but again, that’s not the whole picture.

Let’s look at their net income:

While their revenue has not slowed down, their profitability may have declined in recent quarters.

This recent slowdown in margins comes from failed projects like “Mercado Coin”, MercadoLibre’s internal crypto token, and a serious infrastructure investment in Brazil.

But… let’s look at their cash position:

They have never been in a better cash and free cash flow position.

But unfortunately, that comes with increasing debts:

In our opinion, their debt is very manageable, and they would be able to withstand a liquidity scenario.

Photo from Mercado Libre

Their business model remains strong. They are a very solid competitor to Amazon by being the number one e-commerce platform in the entire continents of South America and Central America, dominating in huge markets like Mexico and Brazil.

Photo from Mercado Libre

And finally, these are the most significant articles which summarize the market’s current opinion on the stock, and explain its price swing:

At its current price, Furatena sees Mercado Libre as a very interesting opportunity, having a very dominant and financially healthy company at historically low valuations. We are considering opening a position on as we believe it is currently trading below its intrinsic value and offers great exposure to a leading business in the Latin American market.

This is not financial advice, nor an official buy or sell recommendation.

Remember to invest considering your own risk parameters, and please subscribe to our newsletter for more posts like this!

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During our routine market checks for undervalued companies we came across Hermès. They are a luxury French fashion house, they are known for their traditional craftsmanship, sky high prices, and iconic leather goods like the Birkin and Kelly bags. Their stock has dropped 29% in the past year, and almost 35% from all-time highs.

Google stock chart

This is a very interesting stock because it is not actually listed on the New York Stock Exchange or the NASDAQ, but that doesn’t stop it from having a $200 Billion market cap (down from $300 Billion at its peak).

Lets take a look at the fundamentals:

Unfortunately our stock analysis spreadsheet currently only supports US listings (we are working on it), so we will use Joseph Carlson’s amazing and cheap financial tool Qualtrim.

European companies are able to report earnings only twice a year, but the data is still very valuable and maybe even simpler to interpret. Lets take a look:

We can see that revenue and net income have not decreased, but they have slowed down over the past handful of quarters, this alone can explain the drop in price considering their P/E ratio. Lets take a look:

Their price to earnings ratio is moderatley high at around 40, but its historitcally low considering it has been around 50 or more for the past 5 years. The last time it was this low was in 2022, and when that happened this was the price movement that followed:

Robinhood chart

They have a very solid cash position and virtually no debt:

Their other valuation ratios are also around historic lows:

While their Free Cash Flow Yield is way up, and last time it was this high was before that big move upwards after 2022:

Their business model remains incredibly solid, as their very high earning costumers will continue to pay no matter what price they set

Photo by Hermès

And finally these are the most significant articles which summerize the market’s current opinion on the stock, and explain its price swing:

At its current price, Furatena sees Hermès as a very intersting opportunity with room for a pullback. We will continue to monitor its price movements, and if it drops even more or its growth starts to come back, we might even take a position.

This is not financial advice, or an official buy or sell recomendation.

Remember to invest considering your own risk parameters, and please subscribe to our newsletter for more posts like this!

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I am nowhere close to a professional writer; I have always hated writing long essays because I always ran out of things to say.

As my business is in the investment industry, I am aware of famous investor letters like Warren Buffet’s and Howard Marx’s memos. I hope you don’t take this letter as a copy or a “wanna-be”, but as a heavily inspired investor who has a lot to say about the markets and my own firm’s performance. So even with the spelling and grammar mistakes that I have, I hope you can extract even a little bit of value from this letter.

On May 2025 I decided to incorporate my business Cayena & Co. in Delaware and start looking for investors. My original idea was to pitch investors into an investment firm which focused on trading securities listed on emerging markets. This turned out to be somewhat of a waste of time for multiple reasons:

1. I did not have any track record

2. I didn’t know anybody even remotely close to this industry.

3. I was going at it all wrong.

To this day I still think the main idea of my business should have been attractive enough. Emerging markets like Colombia, had a stock market with almost no retail investor participation, there was even barely any institutional investment going on. This made it obvious to me that there were a lot of opportunities in this market if I was willing to look. The one thing I knew for sure was that I was going to have my own investment firm one way or the other. I really can’t explain what is it about financial markets and investing that completely hooked me but the second I took my first trade I knew this was what I was going to do for the rest of my life.

The problem was I did not have enough money to make any significant investments, and there was nobody willing to invest their money in me.

This put me in a situation where I had to figure out another way to get my business going, I emphasize had because there was absolutely no way I was going back to McDonalds or any other miserable job. Not to throw shame at anybody making an honorable wage, but I was 110% confident in my ability as an investor and knew it was only a matter of time before the market found that out too.

What I ended up doing was… watching a lot of podcasts. Mostly famous investors talking about their life story or their view on the AI bubble. But on a random day I watched a Diary of a CEO podcast with famous investor Mohnish Pabrai. In this podcast, this investor who I didn’t even know, told the story of how Richard Branson started Virgin Airlines with no capital, and if he was able to start an airline with no capital, then any other business was able to do the same.

Now to say this 5-minute story told on a YouTube podcast completely changed my view on entrepreneurship, startups, and my own business model, is an understatement.

This story fascinated me because I had never even thought of starting my business this way. I figured to invest I needed money, I had no money personally, and nobody wanted to give me theirs, so I was stuck. But Richard Branson was able to get a lease on an old airplane with Boeing agreeing to be paid a month later, he then sold the seats to this plane and was able to pay the lease and even generate profit, and from there it was just a matter of repeating and scaling.

Now I have to say I don’t know how real this story is as I never researched it further, but it didn’t matter. My mind was immediately put to work. My task now was to figure out a way to do something similar but related to investing in emerging markets where there were huge, overlooked opportunities. Trust me, I have never used as much brain power as I did those few days, but the result was amazing. I didn’t have a name for it yet but I knew exactly what business model my company was going to do now.

Another quick disclaimer, I am writing this letter with this idea already formulated and with some investment success, but still no real investors or any external profit made. So this letter might have never been read by anybody, but I have such overwhelmingly huge confidence in both my business model and my investment prowess, that I decided to get started on this letter even before my idea worked, because I know it will.

Public Venture Catalyst, is the name me and my business partner created for this new business model. My original idea was just to invest capital in Colombian (or any other ‘EM’) securities where there was big upside. What we decided to change it for was a model where we find promising startups, we offer to help them do the following: finance listing costs, find investors, manage legal and accounting paperwork, and a much more. This is all with the final goal of taking that startup public on the countries stock exchange, and getting paid equity for our work.

As soon as I came up with this business model I knew I had something huge, for a few reasons.

1. In the past 5 years before that moment, there had only been one new listed company on the Colombian Stock Exchange. (This still baffles me to this day)

2. Listing, legal, and regulatory costs were significantly lower than in countries like the US, while serving the same purpose which is accessing public capital.

3. Small companies couldn’t afford the cost of listing on a public exchange, but we can cover that for them.

4. And finally our major thesis which is: Every single major country (around 100-200 Billion in GDP at that time, in my opinion) needs to have a sophisticated financial market where there is active retail and institutional participation, and where companies go public on a consistent basis.

I consider our thesis to be incredibly important because every single country should make it so that normal people have access to the best companies and are able to profit and contribute to the companies’ and the country’s overall growth.

As I said earlier, I have no doubt in my mind this business will work and it’s only a matter of time for other people to start to replicate it. So, I will refrain from continuing to talk about it in this letter and I will leave that for future writings.

Now my favorite part…

Let’s talk about the market.

As of today October 26, 2025, the S&P is pretty much at an all-time high, its biggest company is Nvidia, and it has a PE ratio of 50+. There is an obvious question going around. Are we in a bubble?

Are we? I have no clue. I did not live through the dot come bubble, I was around three years old when the 2008 crisis happened, and I was around 15 when COVID happened, and then I learnt about investing right after the GameStop surge in 2021.

What I was able to see looking back and learning about all this events was nobody was able to predict anything, and if you actually were, then a movie was made about you. So, I will not burden myself with trying to predict if we are in a bubble right now. But I will also not let myself stand on the sidelines and not participate in the market. The beautiful thing of my position right now is I have no investors or clients, so I can do whatever I want with my own money.

The reality of the current situation is that we might be in an AI bubble, I do realize that a lot of the AI driven growth has been speculative and hopeful. I have no doubt in my mind that AI will change the world in one way or the other. What we don’t know is when or how it will generate the profits that we need it too. At the end of the day this is commentary on the market and the market is driven by revenue generating businesses. So my current positions right now are mostly unrelated to whether we are in a bubble or not, except for a few hedges that as a prudent investor I couldn’t stop myself from taking.

My current portfolio is one I have put immense time into and am very proud of. For the year 2025 I am up around 100% YTD. I started around May which is when I incorporated my business. I saw there were huge opportunities in big companies that were slightly undervalued.

Apple was down more than 15% on the year and their business remained unchanged, but there was a lot of macroeconomic turmoil, as well as the AI boom which apple was not really a part of. I bought a variety of shares and options through the coming months and profited all the way till it got to its all-time high again.

This is the type of investment I like to make. Good old smart investing, when an amazing company like Apple can find itself undervalued from time to time, and I am right there to profit from it.

My current portfolio consists of similar positions to this one. Some of them are: Adobe which is insanely cheap right now, I must say, United Health which I already profited 400% on various derivatives but still hold a position as I think it’s going further, and Berkshire and Coca Cola which are both slightly undervalued right now and serve as a powerful hedge to a possible AI bubble bursting and I recently sold part of our position in SAP which also served as a hedge to the overinflated US market and will continue to do so in the coming months.

Now the real reason I decided to write this letter today of all days, is because of one single investment: Match Group ($MTCH).

Over this weekend I stumbled upon Match Group’s stock. When I say stumble, I mean being slightly obsessive and just looking up random companies and their stock information when they pop into my head all through the day. Believe it or not that’s how most of my days go, and I love it. I honestly didn’t know anything about this company; I just knew Tinder was owned by a parent company and just looked that up to see which one it was.

When I looked at this stock I saw it had a 70% drop in the past 5 years, a market cap of around 7 billion, and a PE of 15. Seeing this I immediately thought, undervalued. There is no way Tinder, one of the most famous apps in the world, is worth only 7 Billion. Looking even further I realized the market doesn’t think so either, they had it even lower. I then saw Match Group didn’t only own Tinder, they own Hinge too which is one of the fastest growing apps in todays world. Not only that but they also owned around 5 more dating apps. Meaning this company pretty much owns the entire online dating market except for a few competitors like Bumble which is a few orders of magnitude smaller, and they are only worth 7 billion. SNAP, which is only one app, which loses money every quarter, and as time goes on loses its market share, is worth 14 billion, double what Match is worth. Pinterest which has around the same revenue and just very recently became profitable, and they have a 23 billion market cap. The main argument for this mispricing is that Match Group’s apps are subscription based, and since they are more niche than overall social media apps, they don’t have enough paid users. But this is simply a mistake from Wall Street. Matches’ apps, like Pinterest and Snap, generate ad revenue, and their ad revenue has been growing, it just hasn’t been highlighted by the company or the media yet. Hinge is also growing at a fast rate, thanks to the app letting people make more meaningful connections unlike Tinder, but Tinder is still the most downloaded and the most known dating app in the entire world, and it will continue to be for many years to come.

There is a myriad of reasons for Match Group’s stock to rally from its current price of around $30 to around $100. I can name a few more just to make you understand how attractive an investment this was for me.

- They changed their CEO at the beginning of the year

- Activist investors are pushing for changes in the company to take it back to where it used to be.

- Hinge and Asian market apps growing fast

- Tinder still generates immense revenue

- Market hasn’t priced in other forms of growth, just Tinder’s numbers

- Bumble is at its lowest price ever of around 500 million which makes it an easy target for an acquisition.

- From 2021 until now they have resolved lawsuits that have caused problems for the company but won’t continue to, from this point forward.

- In an over-inflated market, their valuation is incredibly conservative.

- This year they contributed major debt repayments, their debt hadn’t been touched since 2020

I really could go on and on…

Like I said before I am writing this letter before me or my company have any material success in any of our endeavors since I have overwhelming confidence that it is just a matter of time until we do.

I really hope you could extract some value from this letter, and if not then hopefully it wasn’t a bad read.

Expect more letters in the future, I will try to publish them monthly on X and in our website. They will include market commentary and our company’s progress. Again

Thank You

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