In the Loop – July 3, 2026

Tomorrow, America celebrates its 250th birthday. As I was thinking about what to write this week, I kept coming back to another milestone that happened in 1776 but doesn’t receive nearly as much attention. That same year, Adam Smith published The Wealth of Nations, a book widely regarded as one of the foundational texts of modern economics.

I’ve always believed that history can be one of the best investment teachers. While markets spend most days reacting to earnings reports, economic data, and headlines, the biggest drivers of long-term wealth are often the ideas that endure for generations. That’s why I wanted to focus this week’s letter on two documents born 250 years ago that, together, helped shape the country and economic system we benefit from today.

The Declaration of Independence gave America political freedom. The Wealth of Nations helped explain why economic freedom matters. Smith’s central idea was surprisingly simple: when people are free to build businesses, innovate, compete, and invest, society becomes more prosperous. He believed wealth wasn’t created by governments directing every decision, but by millions of individuals pursuing opportunity, solving problems, and creating value for others. Looking back over the last 250 years, it’s hard not to appreciate just how powerful that idea has proven to be.

America’s story is really the story of innovation and productive capital. We’ve gone from a collection of colonies to the world’s largest economy by continually investing in the next generation of growth. Railroads connected the country. Electricity transformed manufacturing. Automobiles changed transportation. Semiconductors powered the digital age. The internet reshaped commerce. Today, artificial intelligence, advanced manufacturing, energy infrastructure, and biotechnology are writing the next chapter.

Of course, the journey hasn’t been smooth. America has endured wars, recessions, inflation, financial crises, and periods of tremendous uncertainty. Yet through every challenge, the country’s ability to innovate, adapt, and invest has repeatedly proven stronger than the obstacles in front of it. That resilience is one of the reasons I remain optimistic about the long-term future of our economy.

It also explains how we approach investing. We spend far less time trying to predict tomorrow’s headlines and much more time identifying the companies building America’s future. Whether it’s expanding AI infrastructure, strengthening the electric grid, improving healthcare, enhancing national security, or reshoring critical manufacturing, these are investments that increase our country’s productive capacity. In many ways, they represent the modern version of the capital formation Adam Smith wrote about 250 years ago.

One of the themes we’ve discussed throughout the past year is U.S. Resiliency. To me, that theme isn’t just about geopolitics or government policy. It’s about America’s unique ability to reinvent itself. Our deep capital markets, entrepreneurial culture, world-class research institutions, strong property rights, and willingness to embrace innovation continue to provide advantages that few nations can match. Those strengths have existed for generations, and I believe they’ll continue to drive wealth creation for years to come.

As investors, it’s easy to become consumed by the next earnings season, the next Federal Reserve meeting, or the next geopolitical headline. Those events certainly matter, but anniversaries like this remind us to zoom out. The greatest returns have often gone to those who maintained confidence in America’s ability to innovate through periods of uncertainty rather than react to every short-term challenge.

Two hundred and fifty years ago, a new nation declared its independence while a Scottish economist explained how free people create lasting prosperity. Those ideas have stood the test of time. As we celebrate America’s 250th birthday, I’m reminded that our greatest strength has never been any single company, industry, or technology. It has been the enduring combination of freedom, entrepreneurship, innovation, and investment that continues to move our country forward.