There’s a well-known pattern in finance called the January effect. It states that stock prices, especially small market-cap stocks, tend to rise more in January than in other months. Some speculators buy cheap stocks in anticipation of selling during the month’s rally.

That might not have worked so well this year.

It hasn’t been a great month for our portfolio performance. We trail the S&P 500 by 1.5%. In hindsight, this should have been expected. A lot has happened in the world lately, and so many things are uncertain. No one can confidently say what the world will look like by mid-year, let alone year-end. Our portfolio has 30 shares against the benchmark 500. So volatility hit us harder.

The fundamental thesis for our portfolio still holds strong. Some have reported strong earnings but are threatened by AI, reciprocal tariffs, and commodity prices, to name a few. I expect our portfolio to remain volatile in the coming months. Long-term, I think we are diversified enough to at least keep pace with the market while avoiding concentration risk in the Magnificent 7.

More importantly, all of our holdings remain Shariah-compliant, according to Zoya.

I’ve been a bit complacent with my stock picks recently. I also realize now that picking winning ideas, one at a time, from the Value Investors Club created a portfolio that takes too long to diversify. As a result, my previous portfolio made a measly 0.2% gain in three months, whereas a similar investment in the Vanguard S&P 500 ETF would have made 18%.

This was a sobering, but good experience. For 2026, I’ll abandon the current approach and adopt a more formula-based investing style. These companies are selected using a ranking algorithm I use and filtered for Shariah compliance on Zoya. I’ll write more about the ranking approach in another post, but I hope you find some ideas in this list.

Our portfolio consists of 30 companies, each with equal weight. That means no more than 4% exposure in each company at the start. I’ll reset the purchase price to the closing price on 31 December 2025 and post monthly updates on its performance throughout 2026.

Here is the list of companies.

1. Alkermes (ALKS)

Alkermes plc is a biopharmaceutical company that researches, develops, and commercializes pharmaceutical products to address unmet medical needs in various therapeutic areas. Its marketed products include treatments for schizophrenia, alcohol and opioid dependence, bipolar disorder, and multiple sclerosis. The company is also developing drug candidates for schizophrenia, bipolar disorder, and cancer immunotherapy.

2. Expedia Group (EXPE)

Expedia Group, Inc. is a global online travel company operating through multiple segments and brands, offering a wide range of travel-related services, including hotel bookings, alternative accommodations, flights, car rentals, cruises, and vacation packages. The company caters to both leisure and corporate travelers through its diverse portfolio of well-known brands, including Expedia, Hotels.com, Vrbo, Orbitz, and Trivago. Founded in 1996 and headquartered in Seattle, Washington, Expedia Group has expanded its reach internationally and continues to innovate in the online travel industry.

3. Incyte Corporation (INCY)

Incyte is a biopharmaceutical company based in Wilmington, Delaware, that specializes in developing and commercializing proprietary therapeutics. The company offers several drugs for treating various cancers and other diseases, including JAKAFI, PEMAZYRE, and ICLUSIG, and has a robust pipeline of clinical-stage products. Incyte collaborates with numerous pharmaceutical and biotechnology companies to advance its oncology and other therapeutic research and development efforts.

4. Tactile Systems Technology (TCMD)

Tactile Systems Technology is a medical technology company that develops and provides medical devices for the treatment of chronic diseases like lymphedema, venous disorders, and retained pulmonary secretions. It offers products such as the Flexitouch Plus system for lymphedema treatment, the Entre system for at-home treatment of venous disorders, and the AffloVest for the treatment of retained pulmonary secretions. The company was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.

5. Yelp (YELP)

Yelp operates a platform that connects consumers with local businesses in the United States and internationally across categories such as restaurants, shopping, beauty and fitness, health, and more. The company provides free and paid advertising products to businesses, including cost-per-click search advertising, multi-location Ad products, and business listing page products. It also offers services like Yelp Reservations, Yelp Waitlist, Yelp Knowledge program, and Yelp Fusion, catering to various business needs.

6. Rigel Pharmaceuticals (RIGL)

Rigel Pharmaceuticals, a biotechnology company, discovers and develops small-molecule drugs to treat hematologic disorders, cancer, and rare immune diseases. The company offers Tavalisse for the treatment of adult patients with chronic immune thrombocytopenia. It is developing several other drug candidates in various stages of clinical trials for autoimmune, inflammatory, and hematology-oncology diseases. It has research and license agreements with several pharmaceutical companies for the development and commercialization of its drug candidates.

7. Progyny (PGNY)

Progyny is a benefits management company specializing in fertility and family-building benefits solutions for employers in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and a selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution, as well as surrogacy and adoption reimbursement programs for employers.

8. TechnipFMC (FTI)

TechnipFMC plc is an oil and gas company engaged in two segments: Subsea and Surface Technologies. The Subsea segment designs, engineers, and provides services for subsea systems used in oil and gas production and transportation. In contrast, the Surface Technologies segment manufactures and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. The company operates globally and has a strategic alliance with Talos Energy Inc. for Carbon Capture and Storage projects.

9. F5 (FFIV)

F5, Inc. is a Seattle-based company that specializes in multi-cloud application security and delivery solutions. They offer a wide range of products and services designed to help businesses develop, deploy, operate, secure, and govern applications across various architectures, from on-premises to public cloud environments. F5 partners with major cloud providers and serves large enterprises, public sector institutions, and service providers worldwide through a network of distributors, resellers, and systems integrators.

10. Cal-Maine Foods (CALM)

Cal-Maine Foods produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs under brand names such as Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, and 4-Grain, as well as private-label products. It sells its products to grocery store chains, club stores, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, midwestern, and mid-Atlantic regions of the United States.

11. Armstrong World Industries (AWI)

Armstrong World Industries, Inc. designs, manufactures, and sells ceiling systems primarily for residential and commercial buildings in the United States, Canada, and Latin America through its Mineral Fiber and Architectural Specialties segments. The company produces suspended mineral fiber, soft fiber, fiberglass wool, metal ceiling systems, wood, wood fiber, glass-reinforced-gypsum, felt ceiling and wall systems, ceiling component products, acoustical controls, facades, and partitions. Its products are sold to resale distributors, ceiling system contractors, wholesalers, and retailers.

12. Teradata Corporation (TDC)

Teradata provides a connected multi-cloud data platform for enterprise analytics through its Teradata Vantage offering. It offers business consulting services to support organizations in establishing a data and analytics vision, operationalizing analytical opportunities, enabling a multi-cloud ecosystem architecture, and ensuring the analytical infrastructure delivers value. The company serves clients across various sectors, including financial services, government, healthcare, manufacturing, retail, telecommunications, and travel/transportation, through a global direct sales force.

13. BK Technologies Corporation (BKTI)

BK Technologies Corporation designs, manufactures, and markets wireless communications products, including two-way land mobile radios, repeaters, base stations, and related components and subsystems. The company's BK Technologies, BKR, and BK Radio-branded products cater to professional radio users in government, public safety, and military applications. In contrast, its RELM-branded products provide two-way communications for commercial and industrial applications. BK Technologies Corporation is headquartered in West Melbourne, Florida.

14. Electromed (ELMD)

Electromed develops, manufactures, markets, and sells airway clearance therapy and related products that apply high-frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages. The company offers SmartVest airway clearance system, SmartVest SQL System, and SmartVest Connect, a wireless technology with a personalized HFCWO therapy management portal. It primarily targets the home health care market for patients with bronchiectasis, cystic fibrosis, and neuromuscular disease, marketing its products to physicians, health care providers, and patients directly.

15. Red Violet (RDVT)

Red Violet is a software and services company that specializes in proprietary technologies and analytical capabilities to deliver identity intelligence. It offers idiCORE, an investigative solution used for due diligence, risk mitigation, identity authentication, and regulatory compliance, as well as FOREWARN. This app-based solution provides instant knowledge before face-to-face consumer engagement. The company serves various industries, including financial services, insurance, healthcare, retail, telecommunications, law enforcement, and government agencies.

16. InfuSystem Holdings (INFU)

InfuSystem Holdings, through its subsidiaries, provides infusion pumps and related products and services in the United States and Canada. The company operates in two segments, Integrated Therapy Services (ITS) and Durable Medical Equipment Services (DME Services). It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, pain management, and other disease states.

17. Harmonic (HLIT)

Harmonic Inc., together with its subsidiaries, provides video delivery software, products, system solutions, and services worldwide through its Video and Cable Access segments. The Video segment offers video processing, production, and playout solutions and services to cable operators, satellite and telecommunications Pay-TV service providers, and streaming media companies. The Cable Access segment provides cable access solutions based on CableOS software and central cloud services primarily to cable operators.

18. ExlService Holdings (EXLS)

ExlService Holdings, Inc. operates as a data analytics and digital operations and solutions company, providing services across the insurance and healthcare industries, including claims processing, policy administration, care management, and analytics-driven solutions leveraging digital technology, artificial intelligence, and automation. It offers platforms and software solutions, including CareRadius, LifePRO, LISS, and Subrosource, to meet various industry-specific needs. The company was founded in 1999 and is headquartered in New York City.

19. Cricut (CRCT)

Cricut designs and markets a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates in three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized items such as birthday cards, mugs, T-shirts, and large-scale interior decorations.

20. Intuit (INTU)

Intuit Inc. is a financial technology company headquartered in Mountain View, California, offering a wide range of financial management, compliance, and marketing products and services across four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The company's offerings include popular software and platforms such as QuickBooks, TurboTax, Mailchimp, and Credit Karma, catering to small businesses, self-employed individuals, consumers, and tax professionals. Intuit's products and services are distributed through various channels, including direct sales, mobile app stores, and partnerships.

21. Ralph Lauren Corporation (RL)

Ralph Lauren is a global lifestyle brand that designs, markets, and distributes a wide range of products, including apparel, accessories, home goods, and fragrances under various brand names. The company operates through multiple sales channels, including department stores, specialty stores, its own retail locations, and e-commerce platforms, with a significant international presence across North America, Europe, and Asia. Founded in 1967 and headquartered in New York, Ralph Lauren also manages a collection of restaurants and cafes that embody the brand's lifestyle aesthetic.

22. NetScout Systems (NTCT)

NetScout Systems, Inc. provides service assurance and cybersecurity solutions to protect digital business services against disruptions. The company offers management software, specialized platforms, and analytical modules to analyze and troubleshoot network traffic, as well as cybersecurity solutions to protect networks against distributed denial-of-service attacks and advanced threat detection.

23. Adtalem Global Education (ATGE)

Adtalem Global Education provides workforce solutions worldwide through its three segments: Chamberlain, Walden, and Medical and Veterinary. The Chamberlain segment offers nursing and health professions programs; the Walden segment offers online degrees in fields like nursing, education, and business; and the Medical and Veterinary segment provides programs in medical and veterinary education through institutions such as American University of the Caribbean School of Medicine and Ross University School of Veterinary Medicine.

24. Pure Storage (PSTG)

Pure Storage, Inc. provides data storage technologies, products, and services, offering a range of solutions, including FlashArray for block-oriented storage, FlashBlade for unstructured data workloads, and Portworx for cloud-native Kubernetes data management. The company's Purity software, shared across its products, provides enterprise-class data services such as data reduction, protection, and encryption, along with storage protocols for block, file, and object storage.

25. Paycom Software (PAYC)

Paycom Software, Inc. is a U.S.-based company providing cloud-based human capital management (HCM) solutions for small to mid-sized businesses. Founded in 1998 and headquartered in Oklahoma City, the company offers a comprehensive suite of software-as-a-service applications covering various aspects of the employment lifecycle, including recruitment, payroll, time management, talent management, and compliance. Paycom's HCM solution also includes innovative features such as mobile management tools, direct communication platforms, and remote-workforce-tracking capabilities.

26. Vicor Corporation (VICR)

Vicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power. The company offers a range of brick-format DC-DC converters, complementary components, input and output voltage and power products, electrical and mechanical accessories, and custom power systems solutions. It serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers across various markets, including aerospace, defense, industrial automation, instrumentation, lighting, telecommunications, and transportation.

27. Remitly Global (RELY)

Remitly Global provides digital financial services for immigrants and their families, primarily offering cross-border remittance services in approximately 150 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.

28. IDEXX Laboratories (IDXX)

IDEXX Laboratories, Inc. is a global company that develops and manufactures products for animal health, water testing, and human medical diagnostics. Operating through three main segments, the company offers a wide range of diagnostic tools, laboratory services, and software solutions for veterinarians, livestock producers, and water quality professionals. Founded in 1983 and headquartered in Maine, IDEXX markets its products through various channels, including direct sales and independent distributors.

29. Healthcare Services Group (HCSG)

Healthcare Services Group provides management and operating services to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States through its Housekeeping and Dietary segments. The Housekeeping segment handles cleaning, disinfecting, sanitizing, and laundry services, while the Dietary segment offers food purchasing, meal preparation, and dietitian services, including menu development and clinical consulting.

30. KLA Corporation (KLAC)

KLA Corporation is a global company that designs, manufactures, and markets solutions for process control, enabling, and yield management in the semiconductor and related electronics industries. Operating through three segments, the company offers a wide range of products and services, including inspection and metrology systems, software solutions, and semiconductor, PCB, and display manufacturing technologies. KLA Corporation, formerly known as KLA-Tencor Corporation, was founded in 1975 and is based in Milpitas, California.

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

Uber connects riders with drivers (Mobility), people with restaurants (Delivery), and shippers with carriers (Freight). Before its 2019 IPO, it was one of the world’s most valuable startups, though it was losing billions of dollars. Since COVID-19, Uber has bounced back.

This thesis suggests Uber now has a sustainable business model and plenty of growth ahead. The company is valued at $143 per share, which is over 50% higher than last week’s trading price.

Local Markets, Global Dominance

London is a good example of Uber’s strategy in action. Many Londoners use Uber, making it one of the company’s top five cities and responsible for 20% of $163 billion in gross bookings in 2024. On average, a Londoner uses Uber to book rides, order food, groceries, retail products, and even travel by train, boat, bike, scooter, or flight about 40 times a year, spending nearly £650 on the platform.

Uber’s success in London shows how it could succeed in other markets around the world.

Solving the Multi-Homing Problem

Uber’s business is highly local. Drivers in New York are focused on their own city, just as commuters in São Paulo aren’t concerned with Los Angeles. This is also true for Uber’s Delivery service. Each city is a separate market that Uber must develop individually.

For Uber to succeed in a city, it needs enough drivers to keep wait times around five to six minutes. In its early years, when venture capital was easy to get, competitors used subsidies to attract drivers and riders to their own apps. This led to the multi-homing problem, where both drivers and riders used several apps to find the best deals.

Because of the multi-homing problem, many investors doubted Uber could ever turn a profit. This thesis argues that Uber has solved this issue, as shown by its approach in London.

Luck and Time in the Market

Uber saw this challenge early and was fortunate to have investors who provided the funding needed to stay in business. The company also chose to focus on key markets and leave others, such as when it partnered with Grab to exit Southeast Asia.

Uber used its large funding to outlast competitors. In London, it now has over 95% of the driver market. The company has shown it can be profitable and should be able to support future growth.

Now, commuters have little reason to choose Bolt or Freenow. Since Uber controls most of the driver market, it’s unlikely that competitors can offer better prices.

The same goes for drivers. Other companies probably can’t offer enough rides for drivers to earn more, except for some initial incentives.

Uber’s experience was unique. It’s unlikely that any other company will be able to raise money as easily as Uber did in its first decade.

Super App

Uber focused on building partnerships with companies that offer transportation or products people want quickly and easily. This includes cars, food, groceries, retail items, trains, boats, bikes, scooters, and even flights. Uber then brought all these services together in one app.

By offering more than just rides, Uber made its customers less sensitive to price changes. People who use several Uber services take two to two and a half times more rides each month and bring in three times more gross bookings than those who use only one service. These customers are also 20-25% cheaper to attract than through paid advertising. In the past two years, Uber’s promotional costs per customer or driver have dropped by over 50%.

Loyalty Program

Uber’s membership program, Uber One, has made customers even more loyal. Since its launch in 2020, membership has grown from 5 million to 30 million users. In London, 19% of Uber users are now Uber One members, accounting for about 35% of all Mobility and Delivery gross bookings in 2024.

For Delivery, customers only need to order three meals a month to get their money’s worth. They also receive discounts and rewards for rides. Uber earns about £5 in recurring revenue per month from this program, which is a high-margin source of income. Along with advertising, this helps explain how Uber quickly went from losing money to generating strong cash flow.

Dynamic Pricing

By introducing dynamic pricing and upfront fares in some markets, Uber has gained more control. These changes have raised average fares, increased Uber’s share of each ride, and helped balance supply and demand.

If you book an Uber ride or order food today, you’ll notice how Uber’s pricing works. When you’re in a hurry or there’s a surge, Uber may suggest upgrading to Uber Black. Delivery fees are set up to encourage larger orders, with fees above 11% for orders under £27.

Future Prospects

By 2021, Uber’s top 20 markets were already making money, with the top five showing margins above its long-term goals: 10% for Mobility, 5% for Delivery, and 7% overall. While we don’t have the latest numbers for these markets, Uber’s earnings margin as a share of gross bookings was over 4% in 2024, up from 1.5% at the end of 2021. This points to growing profitability in the top 20 markets.

Uber still has many markets where it hasn’t reached full scale. Growing these markets requires marketing and promotions, but the outlook is positive. Uber’s return on advertising is rising, and even as total ad spending has increased, the cost to acquire each user has dropped by nearly 30% over the past three years.

If Uber can apply its London strategy to other markets, it could build a business with strong earnings potential.

Why Now

Uber has shown that, despite early setbacks, it can make money with its current business model and strategy. The company now has 170 million users and a market cap of $195 billion. This analysis sees even more room for growth.

1. Uber’s potential market is much larger than its current user base. The United Kingdom is its most developed market, with 13% of the target population using Uber. Except for Mexico, all other markets are below 10%. Since most trips are still cheaper than Uber’s, there’s room to grow by partnering with providers of more affordable transportation.

2. Cross-selling Mobility and Delivery helps Uber reach more people and boost engagement. While Uber is well-known in big cities, it’s less common in rural areas. As of early 2025, these less populated areas were growing 50% faster than cities, and competition is expected to be lower there.

3. Uber can add more merchants to its Delivery service, cut down on order issues, and use its courier network more efficiently. This should make orders more affordable and encourage more use. Uber has been working on these improvements, and its user base and order frequency are likely to keep growing.

4. In Uber’s top 10 cities, average fares have grown by 6.5% per year over the past six years. Factors like fuel prices, insurance, wages, driver supply, and Uber’s pricing will likely keep fares rising. Uber’s share of each ride has also gone up: Mobility take rate is now 30%, up by 8% in five years, and Delivery take rate has doubled to 18%.

The US market shows what happens when things settle. Uber and Lyft control 76% and 24% of the rideshare market, and their prices are very similar. Since 2023, both have focused on increasing profits. Other markets are likely to follow this pattern as they mature.

What It’s Worth

Uber’s current value is $195 billion. To support this, it needs to generate about $16 billion in cash every year. This would require 15.5 billion trips annually, with 218 million monthly users, each taking about 6 trips at $14.50 per trip.

To reach these goals, Uber must grow by 37%, double its profit margin, and triple its cash profits. While this seems ambitious, this thesis believes it’s possible within three years.

Uber expects to grow 15% to 19% per year through 2026, with profits rising even faster at 37% to 40% per year. If it keeps up steady growth through 2029—adding more users, increasing trips per user, and raising prices a bit—the stock could be worth about $143 per share.

Risks

Regulation

With ridesharing and delivery, establishing a presence in a new city can prove difficult. In addition to business, regulation has been a challenge even from Uber’s early days. Its approach had been to seek forgiveness later rather than request permission, and to run in as many cities as possible to establish its first-mover advantage. It suffered setbacks along the way, but these helped pave the way for regulation.

Uber’s success in London is even more remarkable given that its license to operate was revoked twice in 2017 and 2019. Its competitors face similar challenges, including more pushback from local communities, but Uber has proven that regulation is possible. It is now regulated in over 70 countries.

Some cities, such as London and New York, showed that regulatory interventions had strengthened Uber’s competitive position. Bolt and Ola scaled down their operations in London, citing regulatory complexity. Juno blamed New York regulations as one of the reasons it shut down. Uber benefits as regulation raises barriers to entry.

Insurance

Insurance is a significant cost for Uber’s business, accounting for a third of fares. The cost of insurance is largely out of Uber’s control, as it depends on market conditions. Uber passes this cost to its customers, and it can affect its competitiveness against other modes of transport when premiums rise rapidly, as they did in 2023 and 2024.

In the United States, where insurance costs are increasing, Uber is focused on helping its drivers improve their driving, which can impact the frequency of claims. This helps Uber get lower premiums. In addition, it is also lobbying for regulatory changes to reduce this cost.

It’s not certain whether these efforts will result in significant insurance costs. Similar to regulation, while insurance costs are a risk, they also serve as a barrier to entry for potential competitors without a strong balance sheet and track record.

Recession

Another unknown is how Uber’s business would be affected by a strong economic recession. On the one hand, customers’ discretionary income would suffer. Higher unemployment would likely lead more drivers to join the platform, which could push prices and wait times lower, improving the customer experience and mitigating the impact of reduced demand.

While not entirely similar, Uber’s performance during the COVID-19 pandemic suggests its competitive advantage improved.

Autonomous Vehicles

The announcement of Uber’s partnership with Waymo, launching in Atlanta, sent the stock up almost 10%. Uber believes its future in autonomous vehicles is in partnerships, and it no longer runs its own development.

Uber’s most recognized partnership is with Waymo in Austin, but it also has partnerships in other places. Autonomous vehicle companies can earn fees by keeping their vehicles available on the platform, and Uber can test the benefits of a hybrid model.

However, there is a long-term risk that Uber’s business could be disrupted.

Freight

This thesis does not look at Uber’s Freight business. It had a gross booking of $5 billion in 2024, but remains unprofitable. Given management’s lack of commentary on its prospects, it seems to have been deprioritized.

As a marketplace that helps shippers optimize their empty space and connect them to merchants, an upturn in trade would be an opportunity for growth. This thesis does not assign any value to this segment.

Checks

• UBER is Sharia-compliant according to Zoya.

• The closing price of $93.40 has a 3-star rating on Morningstar.

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

I haven’t been able to post regular portfolio updates recently, as I have been travelling. We got a bit lucky with our last pick. A series of events occurred, and the market responded favorably to ASML’s stock price. So our portfolio earned an extraordinary short-term gain.

I don’t expect this to happen often. Our goal remains to invest in companies with solid businesses trading at a deep discount. This means investing for at least a year for the market to realize this value, before deciding if we want to reallocate our investments.

Sharia Investments

Benchmark

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

Align Technology makes Invisalign, which consists of clear plastic aligners that straighten teeth instead of metal braces. They just reported their second-quarter results for 2025, and things didn’t go well. The company’s revenue dropped slightly compared to last year; they’re selling about the same number of aligners as before (basically no growth), and their stock price fell by more than a third. Wall Street analysts who follow the company are much more pessimistic about its future.

Here’s what’s happening: fewer people are getting their teeth straightened overall, and when they do, more are choosing old-fashioned metal braces because they’re cheaper. Align still dominates the clear aligner market (about 80% of the North American business), but they’re feeling real pressure. The economy has people thinking twice about spending money on cosmetic dental work, and dentists are having trouble converting patient consultations into actual sales.

The money picture: holding steady but not growing

Align brought in just over $1 billion in the quarter, which sounds impressive, but it was down 1.6% from last year and fell short of what analysts expected. Their main business (the clear aligners themselves) brought in about $805 million (down 3.3%), while their scanner and services business did better with $208 million (up 5.6%).

The good news is they’re still making healthy profits. Their profit margins actually improved slightly because they’ve been managing costs well. They made $1.72 per share, which beat last year’s $1.29. However, the price they’re getting for each set of aligners dropped from $1,295 to $1,250. That’s happening because they’re selling more of their simpler, cheaper products and expanding into markets where prices are naturally lower.

Who’s buying and who’s not

Align sold about 644,000 sets of aligners in the quarter (barely any change from last year or the previous quarter). The geographic breakdown shows an interesting pattern: their Americas business (mainly the US) weakened, Europe grew modestly, and Asia-Pacific (especially China) showed solid growth.

One bright spot: teenagers and kids. Over 223,000 young people started treatment in the quarter, a record for any second quarter. That’s important because it shows parents are still investing in their children’s dental health even when budgets are tight.

Here’s a concerning detail, though: Align now has a record 86,250 dentists trained to use Invisalign, but each dentist does only about 7.5 cases on average. That’s pretty low. It suggests either the market is getting too crowded with providers or dentists aren’t finding it as easy to convince patients to choose Invisalign over traditional braces.

What Align is doing about it

The company isn’t sitting still. It’s launching new products that can handle more complex dental issues (like aligners that help young people’s jaws develop properly and expanders that widen the upper jaw). It also has a new scanner that allows dentists to create better treatment plans.

On the business side, they’re making significant changes. They announced a major restructuring that will cost $150-170 million but should save money going forward. They’re moving manufacturing closer to customers to cut shipping costs and planning to use more automation. The goal is to improve their profit margins by at least one percentage point next year.

The company still believes there’s enormous growth potential. They estimate 600 million people worldwide could benefit from clear aligners, and they’ve reached less than 4% of that market. They’re spending $300 million a year on research and development to stay ahead of competitors, and they even invested $30 million in Smile Doctors, the country’s largest orthodontics practice chain, to strengthen relationships with providers.

What to expect going forward

Management’s projections for the rest of 2025 are pretty cautious. They expect the third quarter to be weaker than the second (which is normal for the summer months), and for the whole year, they’re predicting essentially flat to slightly positive growth.

The restructuring costs will temporarily hurt profits in the second half of this year, but the company expects to be in better shape by 2026. They’re continuing to invest in the business (planning to spend $100-125 million on equipment and facilities), and they’re buying back their stock, which shows they think the current low price won’t last forever. In August, the CEO bought nearly $1 million of shares, putting his money where his mouth is.

Wall Street’s cold reception

Financial analysts reacted harshly. Major firms downgraded the stock from “buy” to “hold” or equivalent ratings. Morgan Stanley cut its price target from $249 to $154 (a 38% reduction). Other firms made similar cuts, ranging from 20% to 40% reductions in what they think the stock is worth.

The average analyst now thinks the stock is worth about $186, compared to its current trading price of around $126. That suggests there could be some upside, but it’s a far cry from expectations before these results came out.

The stock’s immediate reaction was brutal (it fell more than 35% on the day of the announcement). Analysts pointed to three main worries: weak demand as fewer patients commit to treatment, economic uncertainty, including potential tariff impacts, and competition from traditional metal braces as cost-conscious practices and patients look for cheaper options.

The bottom line

Align Technology is going through a tough transition. They’re still the clear leader in their market with good products and a strong position, but they’re no longer the high-growth company they once were. Instead, they’re facing the reality of being in a mature market where growth is hard.

The following year or two will be about executing their restructuring plan, defending their market share, and waiting for better economic conditions. At today’s depressed stock price, some investors might see an opportunity (essentially betting that the company will successfully cut costs and eventually return to growth). But anyone hoping for rapid expansion should probably wait for more evident signs that demand is improving and their turnaround efforts are working.

This company is at a crossroads, shifting from “how fast can we grow?” to “how efficiently can we operate?” The answer will determine whether today’s stock price is a bargain or reflects a new, more modest reality.​​​​​​​​​​​​​​​​

Checks

• ALGN is Sharia-compliant according to Zoya.

• The closing price of $126.19 has a 5-star rating on Morningstar.

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

What ASML Does

ASML is the only company in the world that can create the incredibly tiny features needed in the most advanced computer chips. These chips power everything from smartphones to artificial intelligence systems.

To understand how remarkable this is, imagine trying to draw a line that is 50,000 times thinner than a human hair. ASML's machines can do exactly that, millions of times over, with perfect precision.

The company's most advanced machines use something called extreme ultraviolet light. Inside each machine, a generator shoots out 50,000 tiny droplets of molten tin every second. A powerful laser hits each droplet twice - first to shape it, then to turn it into plasma that gives off the special light needed. This light bounces off mirrors so perfectly smooth that if one were the size of Germany, its biggest bump would be smaller than a millimeter. The final light beam hits a silicon wafer with accuracy equivalent to shooting an arrow from Earth and hitting an apple on the moon.

This entire process happens in a vacuum because the light wavelength is so small that ordinary air would absorb it. Each machine contains more than 50,000 unique parts from 5,150 suppliers worldwide. When ASML ships a machine, it fills 40 freight containers and requires three fully loaded Boeing 747 cargo planes.

ASML controls 100% of the extreme ultraviolet market and over 90% of other advanced chip-making tools. Its main competitors, Canon and Nikon, have given up trying to match this technology. Only some Chinese companies, backed by unlimited government funding, are attempting to compete. But this is not something money alone can solve. It took the brightest engineers in the world nearly 30 years and tens of billions of dollars to develop this technology.

Why We Think ASML Is Undervalued

The investment case is straightforward: without ASML's machines, we cannot make the most advanced computer chips that power modern technology. The company trades at about 25 times its expected 2025 earnings, which seems reasonable for what amounts to a tollbooth on computing progress.

However, investors worry about two main issues. First, that demand for lithography (ASML's specialty) may have peaked. Second, that with Samsung and Intel struggling, only one major customer - Taiwan Semiconductor Manufacturing Company (TSMC) - remains at the cutting edge.

The Peak Demand Concern

Historically, as chip features get smaller, companies need more lithography equipment. But the industry is now also building upward on wafers rather than just shrinking features. This vertical approach uses more equipment from other companies and relatively less from ASML.

Yet this does not mean less demand for ASML's products - just slower growth in demand. Even if ASML's share of equipment spending declines slightly, total equipment spending is exploding. Over 10 to 20 years, temporary market share shifts matter little when the overall market is growing rapidly.

This reminds us of concerns about Moody's in 2016. The market feared the credit rating company was earning too much because of low interest rates. Even if true, buying a business that could grow mid-cycle earnings by over 10% annually for decades made the exact valuation multiple less important.

The Single Customer Risk

TSMC is indeed the main customer for the most advanced tools. Intel recently warned that without securing a major customer for its newest technology, it might abandon further development. We suspect Intel is signaling to the industry and the Trump administration about the importance of maintaining American semiconductor manufacturing capabilities.

Even if TSMC were ASML's only customer, the relationship works both ways. If TSMC refused a 3% price increase, ASML could simply say "buy your tools elsewhere" - except nowhere else exists. Companies like Nvidia would likely pressure TSMC to accept the increase rather than delay chip production. The semiconductor industry is so profitable that equipment costs can be passed through to customers.

Long-Term Growth Drivers

ASML's revenue depends on four factors: the number of wafers processed, layers per chip, dose requirements and equipment prices. We expect these to drive low double-digit revenue growth.

Wafers: Over 25 years, wafer production has grown about 4% annually. Looking at 20-year growth ending at the 2022 peak suggests 7% annual growth. We think 4% to 7% yearly growth is reasonable for the coming decades.

Layers: TSMC's current advanced chips use 19 to 20 layers of extreme ultraviolet processing. Its next-generation chips will use about 25 layers, with future chips expected to reach the high twenties. ASML projects advanced logic chips will grow from 19 to 21 layers in 2025 to 25 to 30 layers by 2030. Memory chips show even faster layer growth. We estimate 3% to 4% annual growth from increasing layers.

Dose: As features shrink, manufacturers must expose each layer longer to maintain quality. This is like shooting more arrows at a smaller target to hit the centre on average. Each chip node requires about 50% more exposure time to maintain the same precision. While suppliers work to minimize this increase, dose requirements will still add to growth over time.

Price: ASML uses value-based pricing tied to three factors: how fast machines run, how small features they can create and how precisely they align layers. As each new machine generation improves these capabilities, ASML can charge more. Given the company's monopoly position, it can also pass through inflation. We expect 2% to 3% annual price increases.

Margins: ASML expects gross margins to improve from 52% in 2025 to 56% to 60% by 2030. This reflects growing sales of higher-margin extreme ultraviolet tools, expansion of the profitable services business and standardizing machine designs to reduce costs. Combined with leveraging research and administrative costs, operating margins should improve by 2% to 3% annually.

Expected Returns

Adding these factors together, we expect ASML to grow revenue by 9% to 15% annually: 4% to 7% from more wafers, 3% to 5% from more layers, additional growth from dose requirements and 2% to 3% from higher prices. Management's own projections suggest 7% to 14% annual system sales growth through 2030.

At 25 times earnings, investors get a 4% earnings yield plus 9% to 15% revenue growth plus 2% to 3% margin expansion. This suggests potential returns of 15% to 22% annually. While results will be lumpy year to year, the valuation appears attractive given ASML's monopoly in a critical, growing market.

Risks

Slower Lithography Growth: If 2025 earnings are above the long-term average because lithography demand was growing faster than sustainable, our return estimates might drop by about 1%. Over decades, this makes little difference, though it could matter for near-term performance.

Geopolitics and Taiwan: Since ASML's supply chain is primarily in Europe and America, any conflict in Taiwan would eventually create a semiconductor equipment boom in friendly countries.

Customer Concentration: We have addressed this concern above.

Economic Cycles: This is a cyclical business. We cannot predict earnings in any given year. But we are confident that earnings will be substantially higher in 10 to 20 years.

What Could Drive the Stock Higher

Time will likely be the main catalyst as ASML executes its growth plan. Reduced uncertainty about trade tariffs could help, as could Intel securing customers for its advanced manufacturing processes.

ASML represents a rare opportunity to own the only company capable of enabling humanity's continued technological progress. At current prices, patient investors should be well rewarded.

Checks

• ASML is Sharia-compliant according to Zoya.

• Closing price of $813.87 has a 4-star rating on Morningstar.

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

Sharia Investments

Benchmark

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

Two companies that sell pipes and pumps to oil companies are joining forces. DNOW and MRC Global just agreed to merge, and this deal could make both companies much more profitable.

What's Happening

DNOW is buying MRC Global in a stock swap. MRC shareholders will get nearly one DNOW share for each MRC share they own. When it's done, the combined company will be worth $2.6 billion and will dominate the market for selling equipment to oil and gas companies across North America.

The stocks dropped after the initial excitement wore off. But this creates a good buying opportunity for investors who understand what's really happening here.

Why This Matters

Think of these companies like Home Depot, but instead of selling to homeowners, they sell pipes, valves, and pumps to oil companies. When two big distributors merge, they can negotiate better prices from suppliers and cut duplicate costs. It's basic business math.

The oil industry has changed a lot since 2014. Companies are more careful about spending money, which means steadier demand for equipment. Both DNOW and MRC have shifted away from selling cheap steel pipes toward higher-profit items like specialized pumps and valves.

Here's the key point: both companies now make 7% to 8% profit margins. The last time MRC had margins this good, they were selling 70% more stuff. That shows how much more efficient they've become.

The Numbers Look Good

Management thinks they can save $70 million per year by combining operations. But this seems low. When Wesco bought Anixter in a similar deal, they saved about 1% of total sales. For DNOW and MRC, that would mean $100 million in savings instead of $70 million.

With those extra savings, the combined company would make about $465 million per year before taxes and interest. At today's stock price, you're paying only 6.1 times that annual profit. Most similar companies trade for 9 to 15 times their profits.

If this company grows as expected and gets a normal valuation, the stock could hit $21 to $24 per share in three years. That's a solid return from today's price around $15.

What Could Go Wrong

Oil prices drive everything in this business. If the economy crashes or oil prices collapse, sales will drop. But these are tough businesses that survive downturns better than most.

Mergers can fail if the companies can't blend their computer systems or if customers get upset during the transition. The good news is that DNOW's management team has done this before and knows how to integrate acquisitions.

Oil companies keep getting more efficient, which means they need less equipment over time. In 2014, about 1,600 oil rigs produced 9 million barrels per day. Today, just 400 rigs produce 13 million barrels daily. This trend has slowed but hasn't stopped.

The government is unlikely to block this deal since the industry remains highly fragmented with thousands of small distributors.

The Bottom Line

You're buying the future dominant player in a steady, cash-generating business at a steep discount. The merger makes financial sense, the management team has experience, and the company will have no debt to worry about.

The stock should do well as the companies combine operations and investors realize how profitable the merged business will be. Sometimes the best opportunities come when Wall Street initially yawns at good news.

Checks

• DNOW is Sharia-compliant according to Zoya

• Closing price of $15.82 has a 4-star rating on Morningstar

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

Interest-based lending is so normal today that we rarely question its ethics. Banks line our streets, credit cards fill our wallets, and mortgages seem like the only way to own a house. But this entire system is wrong, not just from a religious view, but from basic human fairness.

How We Got Here

For most of human history, charging interest was considered morally wrong across all major religions. Christianity, Judaism, and Islam all banned what they called "usury", lending money and charging extra for it. If you needed financing, you went to charitable groups or the government, not profit-seeking lenders.

The shift happened slowly. First, Christian authorities moved from "no interest" to allowing "reasonable" interest rates of 3 percent. Then 10 percent. Even today, in America, some states have usury law that limit interest rates up to 24 percent. This would have been criminal just centuries ago. We have slowly accepted what our ancestors universally condemned.

Similarly in Islamic finance, the Arabic word "riba" does not just mean high interest. It means any addition to a loan, even 1 percent. This is not about the amount. It is about the principle itself.

Why Interest-Based Lending Creates Inequality

Here is the uncomfortable truth about how interest-based lending works: the rich get richer, and the poor get poorer. This is not an accident. It is built into the system.

Think about it this way: if you are wealthy with lots of assets and property, banks see you as low-risk. They will lend you money at low interest rates, sometimes even below inflation. The super-wealthy can borrow millions at 3 percent and invest it elsewhere for higher returns, making money while they sleep.

But if you are poor or middle-class with few assets, you are high-risk. The bank charges you higher interest rates. If you have nothing, you are stuck with credit cards at more than 20 to 25 percent interest.

This creates what economists call a "cost of capital" problem. To build wealth, you need to earn more than your borrowing costs. The rich guy borrowing at 3 percent just needs modest returns to get ahead. The poor person borrowing at 25 percent is swimming against a tsunami.

Meanwhile, when banks create money through lending, which increases money supply and drives up asset prices. Housing becomes more expensive, stocks rise, and the wealthy, who own these assets, get richer. The poor, who do not own assets, just face higher prices for everything.

This is not theory. It is measurable reality. Countries with more bank-based money creation show higher inequality over time. The Gini coefficient (which measures inequality) keeps rising in developed nations, and interest-based lending is a primary driver.

The Religious Ban Makes Sense

When the Quran declares that God "declares war" on those who deal in interest, it is the only sin described this way. This is not random divine anger. It is recognition of a system that harms society.

The ban exists because interest-based lending creates systematic injustice. It transfers wealth from those who need money (usually the poor) to those who have extra money (usually the wealthy). It turns money itself into a product that generates profit without producing any real value.

In pre-modern Islamic societies, if you needed money, you would go to the Bait-al-Mal (public treasury) for a charitable, interest-free loan. Wealthy people would invest directly in businesses or property, sharing both profits and losses with entrepreneurs. This created real partnerships rather than extractive relationships.

Why "Islamic Banking" Is Not Enough

Here is where it gets controversial: even Islamic banks, despite being technically Sharia-compliant, often create the same systematic problems.

Most Islamic banks still function as profit-seeking lending institutions. They may structure transactions as sales or partnerships to avoid technical interest, but the economic effect is often identical. A poor person still pays more than a rich person. Wealth still flows upward. Housing prices still get inflated by easy credit.

The Islamic finance industry, with good intentions, created a "middle ground" that avoided the technical sin while maintaining the harmful system. If real alternatives exist, we should not compare Islamic mortgages to conventional ones. We should ask whether profit-seeking lending institutions can ever be truly ethical.

What Ethical Alternatives Would Look Like

True ethical finance would involve real partnerships and shared risk. Instead of lending you money to buy a house and charging interest, an ethical institution would buy the house with you. You would own your percentage, they would own theirs. If the house value goes up, you both benefit. If it goes down, you both lose.

This is not theoretical, it is how things worked for centuries. In this system:

• There is no guaranteed profit for the "lender"

• Risk is shared fairly

• No new money is created artificially

• Asset prices remain stable and affordable

• Wealth does not automatically flow from poor to rich

For everyday banking, instead of keeping money in interest-bearing accounts at lending institutions, people would hold real assets (gold, stocks, commodities) and use technology to make these assets spendable through debit cards and digital payments.

The Privilege Problem

Here is the hard truth: choosing ethical finance is currently a privilege. Most people cannot afford to buy houses with cash or avoid the mainstream financial system entirely. The lack of widespread ethical alternatives means that ordinary families have little choice but to use interest-based lending to afford homes, cars, or education.

This creates a moral dilemma. We cannot expect a single mother working two jobs to forgo a car loan on ethical grounds when she needs transportation to work. We cannot tell young couples to avoid mortgages when renting costs more than buying in many cities.

The solution is not to judge individuals who use conventional finance out of necessity. The solution is to build real alternatives that work for everyone, not just the wealthy.

What Investors Can Do Right Now

A truly ethical financial system will not emerge overnight. The infrastructure needed to replace interest-based lending requires massive coordination, regulatory changes, and cultural shifts that may take decades or may never fully happen. But as investors, we do not have to wait to act on our principles.

This is where stock picking becomes a moral issue. Many profitable companies make their money directly or indirectly from interest-based systems:

• Banks obviously live off interest spreads

• Insurance companies invest premium money in interest-bearing bonds

• Retailers make huge profits from credit card partnerships

• Real estate companies depend on mortgage lending for sales

• Even tech companies often have financing arms that offer loans

If you believe the system is wrong, investing in these companies means you are funding the very problem you oppose. You become a silent partner in wealth extraction from the poor.

Choosing Ethical Investments

The alternative is not to avoid investing entirely. That just leaves your money in bank accounts, which still feeds the system. The solution is to choose companies that do not depend on interest-based profits.

This means looking for businesses that:

• Make money from actual products or services, not financial engineering

• Do not have significant financing arms or credit operations

• Keep minimal cash in interest-bearing accounts

• Avoid debt-heavy business models

Yes, this limits your options. Yes, it might mean lower returns in the short term. But consider the wealthy Muslim who complains about inequality while holding bank stocks in his portfolio. The contradiction is stark.

Your investment choices are votes for the kind of economy you want. Every dollar you put into an interest-free business is a dollar not funding the extraction machine. Every share of a bank you avoid buying is a small act of resistance.

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

Sharia Investments

Benchmark

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

What Does This Company Do?

SoundThinking makes technology that helps police departments detect and respond to gun violence. Think of it like a security system for entire neighborhoods.

Their main product, ShotSpotter, uses special microphones placed around a city that can automatically detect when guns are fired and tell police exactly where it happened within seconds. This helps police find evidence and victims faster than waiting for someone to call 911.

They also make other software to help police departments manage cases and plan patrols more effectively.

Why This Could Be a Good Investment

The Business Model is Strong

• Police departments sign multi-year contracts (usually 3-5 years)

• Once a city starts using the system, they almost never cancel (less than 1% historically)

• The company gets paid monthly like a subscription service

• They have about $93 million in guaranteed future revenue from existing contracts

They Make Good Money

• The company is profitable and generates about $20 million in cash each year

• They have healthy profit margins of about 20%

• They're growing their revenue by about 15% per year

A Big Opportunity is Coming Up

The Chicago Situation: Chicago was one of their major customers, paying about $10 million per year (roughly 10% of total revenue). In 2024, Chicago's mayor (who campaigned against ShotSpotter) canceled the contract for political reasons - not because the technology didn't work.

Here's the interesting part: Chicago recently put out a request for companies to bid on providing gun detection technology again. This suggests they realize they need this type of system after all.

Why This Matters:

• If SoundThinking wins back Chicago, their profits could increase by about 40%

• The current Chicago mayor is extremely unpopular (only 7% approval rating) and may lose the next election

• Crime remains Chicago's biggest concern according to polls

New Growth Opportunity

The company has a newer product called SafePointe that can secretly detect weapons in places like hospitals and casinos without slowing down foot traffic. California recently passed a law requiring all hospitals to have weapon detection by 2027, which could be a huge market for this product.

What Could Go Wrong?

Main Risks

• Budget cuts: Cities might cancel contracts to save money during tough economic times

• Competition: Other companies are trying to compete, though SoundThinking is currently the leader

• Chicago loss: If they don't win back Chicago, growth will be slower

Current Challenges

• Puerto Rico (a $2 million customer) is up for contract renewal soon

• The company lost some credibility when Chicago canceled, making other cities more cautious

Why Now?

The Stock Looks Cheap

The company is trading at very low valuations compared to other similar technology companies:

• Only about 1.5 times their annual recurring revenue (most tech companies trade at 5-10 times)

• Generating a 14% cash return for investors each year based on expected cash generation

• Management is buying back their own stock, showing confidence

Timing Factors

• In late 2025, the Chicago cancellation will be fully "anniversaried" in their financial comparisons, making their growth look much better

• They should have a cleaner story to tell investors without the Chicago distraction

• Potential acquisition target for larger public safety companies

The Bottom Line

SoundThinking is a profitable company with a strong market position that's temporarily beaten down due to one political cancellation. The business fundamentals remain solid, and there's a reasonable chance they could win back their biggest customer while also growing new product lines.

The investment offers:

• Upside scenario: If they win Chicago back, the stock could potentially double or triple

• Downside protection: Even without Chicago, it's a cash-generating business trading cheaply that's returning money to shareholders

This thesis hinges on the fact that cities will continue to need gun violence detection technology, and that SoundThinking's proven system will remain the preferred choice despite temporary political setbacks.

Checks

• SSTI is Sharia-compliant according to Zoya

• Closing price of $11.42 has a 5-star rating on Morningstar

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.

Welcome to Sharia Investments. In this publication, I’m building a stock portfolio that follows Sharia rules and focuses on value companies.

Every second and fourth Sunday, I’ll choose one new company to add. I’ll explain why I picked it in a short, easy-to-read note.

I will keep each stock for at least one year. By the end of the first year, I should own 24 different stocks. After that, I’ll decide whether to keep it for another year or sell it and buy something better.

Here’s how I choose:

• I read ideas from Value Investors Club, where experts share their best stock picks.

• I use Zoya to check that the companies are Sharia-compliant.

• I look at Morningstar to see if the stock is selling for a fair price.

• I use Claude to help summarize the research in plain language.

Whenever I buy a stock, I’ll also put the same amount in the Vanguard S&P 500 ETF. That way, we can see if my picks are doing better or worse than the market.

Apart from the two stock updates each month, I’ll also write about what I’m learning and thinking about Sharia value investing.

If you’re curious, want to learn, or just want to follow along, please subscribe. I’d love to have you join me!

This post is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. All information presented is based on personal opinion and should not be relied upon solely to make any investment decisions. You should always do your own research and consult with a licensed financial advisor, attorney, or other professional before making any financial decisions. Past performance is not indicative of future results.