I'm Changing How I Manage My Money Because of AI

Hank, I can hook you up with a mathematician friend of mine who splits his time between COVID respirator advocacy and managing a largeish stock portfolio—really fun guy, has what used to be called Asperger's and I have ADHD so we used to hang out at Cornell Games Club playing board games and he couldn't tell when to stop talking and I kept being surrounded by his words and asking interested questions to hear more. I do remember that he considers price-to-earnings important whereas I've always been skeptical (but we agree that it has a unit: the numbers that you see are measured in years!), he is similarly skeptical of the AI bubble, and, I remember one of the times he talked to me about the portfolio he explained that there are just these 300-page financial statements to the stockholders that every company makes year after year and, what makes this job a fit for him, is that he really enjoys taking this dense bundle of facts and figures and doing his detective work to see what's behind the numbers. You would have a really fun time interviewing him. My username, at Gmail.

I feel like someone hasn't read AI 2027 👀👀

you're still buying equities in publicly listed companies; consider other kinds of assets like bonds

This feels like an advert

I don't think the AI models offered by big companies are going to be a useful as people think. Computers do exactly what you tell them to do and is you understand what that means, you also not that AI only really works when it's extremely specialised for a very specific task

20+ years of real wall street here. not like a youtube grifter stock bro … im rare experience level real. i’m a early retired (i am good at what i do 😉 investment advisor. merrill lynch, jpmorgan, wells fargo. this video is very actuate and true.

I have to think that "AI" isn't going to exist in another 10 years, in the same way that "cyberspace" doesn't exist now. The internet didn't go away, it just stopped needing to be romanticized.

What I have noticed: AI, as it is now, is bad at general requests, and is really really good at specific requests. So your idea of midsized companies being the money makers makes sense.

Less exposure to the bubble thats due to pop seems wise.

If we only knew which tech companies for sure would make it through. But chances are you'll invest in likelike not facebook

They make equally weighted ETFs you don’t have to get market cap balanced ones. Source: corporate finance guy with the education for financial services but thinks it’s scummy (highest markup industry in the US, ahead of pharma)

Thanks for making me feel marginally better about spending a week weaving a mat by hand. Might not have added much of value to the world but it is supporting traditional crafters.

TLDR
Diversify how you diversify. Invest in different kinds of diverse funds

Betting against monopolies doesn’t make sense to me. Even if AI is a bubble, it does not detract the fact that the companies mentioned have systematically dismantled competition from ever rising up. Look what happened to black berry, nokia, yahoo, intel. IBM. AI is not going to change the consolidation. AI or the lack of AI is not their core business, it’s lighter fluid. Don’t get distracted from the fundamentals.

Betting on small caps is even more risky as they are still fighting for top position and all of them could lose from lack of economies of scale or a wrong internal investment in AI.

When AI started flipping the market upside down, I panicked. My portfolio crashed, my savings bled, and I genuinely thought I was done. Then I read The Last Money Path. The first line hit like a gut punch, “You don’t lose money when the world changes. You lose it when you don’t.” That sentence rewired me. It taught me how to think like opportunity still exists, even when everyone else sees chaos. Watching this made me realize how right that book was, adaptation is the new investing strategy.

When AI started flipping the market upside down, I panicked. My portfolio crashed, my savings bled, and I genuinely thought I was done. Then I read The Last Money Path. The first line hit like a gut punch, “You don’t lose money when the world changes. You lose it when you don’t.” That sentence rewired me. It taught me how to think like opportunity still exists, even when everyone else sees chaos. Watching this made me realize how right that book was, adaptation is the new investing strategy.

When AI started flipping the market upside down, I panicked. My portfolio crashed, my savings bled, and I genuinely thought I was done. Then I read The Last Money Path. The first line hit like a gut punch, “You don’t lose money when the world changes. You lose it when you don’t.” That sentence rewired me. It taught me how to think like opportunity still exists, even when everyone else sees chaos. Watching this made me realize how right that book was, adaptation is the new investing strategy.

When AI started flipping the market upside down, I panicked. My portfolio crashed, my savings bled, and I genuinely thought I was done. Then I read The Last Money Path. The first line hit like a gut punch, “You don’t lose money when the world changes. You lose it when you don’t.” That sentence rewired me. It taught me how to think like opportunity still exists, even when everyone else sees chaos. Watching this made me realize how right that book was, adaptation is the new investing strategy.

When AI started flipping the market upside down, I panicked. My portfolio crashed, my savings bled, and I genuinely thought I was done. Then I read The Last Money Path. The first line hit like a gut punch, “You don’t lose money when the world changes. You lose it when you don’t.” That sentence rewired me. It taught me how to think like opportunity still exists, even when everyone else sees chaos. Watching this made me realize how right that book was, adaptation is the new investing strategy.

With AI models going open source overseas, I don't understand how American tech giants expect to turn a profit. Even if we eventually have some AGI robot companions in the future, they'd need to have their model installed locally to avoid dying when the wifi cuts, which means that they can't charge a subscription. Open source is the future, and America is betting on closed source.

If you follow politics, Rare Earth Metals and Lithium ETFs have been high performers this year.

Nice video and Thank you also for recommending Sarah Jennine Davis her services are exceptional and I've been earning greatly from investing with her

America needs anti-trust, America needs new leadershit, America needs an enema.
You could always invest in "traditional American value stocks" – guns & whiskey! 😅

Maybe an even smarter choice is to buy an equal weight Sp500 like RSP

Nvidia is the Hewlett Packard, MCI Communications, Sprint and Verizon of our AI bubble. Some became worthless and others worth less. Some recovered because their business model was diverse.

Don't ever bet against Amazon. Also, I'm a Windows hating Linux user, but Microsoft products dominates the workplace, especially in enterprises. Google dominates search engines and digital advertising, Apple controls the US phone market, and Meta monetizes social media. The only other mega cap tech company that I would bet against, other than Nvidia, is Tesla. Elon Musk is a lucky dork and a con artist. Tesla's pains will likely persist for years thanks to the founder's mistakes. I would sooner bet on Intel than Tesla or Nvidia. Nvidia is propped x40 by capital expenditures of the AI race. Once that race ends, so does trillions in Nvidia market cap.

Hank, my grandson is just entering adulthood. His notions of success are built on Youtube influencers. It annoys and baffles him that I got a long way by obstinate longterm perseverence, ethical common sense, and steady progress. He's begun Economics classes, but he lacks "why". I hope he gets "why" from you. Thanks.

great video

Yay! Powell Books!

Don't forget about Bitcoin, Hank 😉

Glad Hank was talking about this. I've been trying to figure out what makes the most sense with my small portfolio too, it's a crazy time rn

Sustainability seems to play no role in your decisions? I expected more from Hank Green 😕🛢️

Powell’s is my local bookstore aww!!! I love it when my two worlds collide. My love for the Green brothers and my love for my city.

I think as more and more companies start up ai companies, they will drive up the cost of electricity to the point that ai will be found to cost more than it benefits and ai will go bust. There is starting to be a lot of info coming out from the communities around ai centers on how their electric cost have inflated. This presidency is killing wind and solar investing at the same time exportation of natural gas is being encouraged that even if you have a natural gas generator, and decide you can’t afford commercial electricity but want to generate your own, it wouldn’t be much if any savings. It will take some time before ai goes bust because a lot of money has been invested in it and people have the tendency to throw more money into a failing investment to try to prevent losing the money already invested. Kind of like most gambling addicts who take some of the savings for kids’ college fund thinking they’ll increase it and put it back but then lose it and withdraw more money to “save” it. This is a painful time to be alive. We really need to come together for most of us to survive this. This administration is hell bent on taking us to a war where everyone loses except for the profiteers. Renaming the department of defense to the department of war tells you their intentions. And they will fire all the seasoned generals that understand the risks to get toadies that will just do their bidding and allow thousands of Americans to get slaughtered in battle that could have been avoided.

My mentor told me to invest in myself.

TLDR; More diversification is good.

Financial Advisor here, and I approve of this message.

Okay mr Bogle

The money in AI is not in the models themselves. The models themselves are a cost center. They are enormously expensive to train and very good ones are already available for no fee. The money is in the infrastructure. Research data centers and then you'll have a revised take. (It might not change your conclusions about your money, however.)

what a fool

wait, ai is changing money too now? 😲

Investing smartly is like choosing the right workflow platform. Pneumatic Workflow has been a great choice for us!

so relatable hank, i was thinking the same

wow didn't think about using ai for finances

this is making me rethink my investments lol

wow didn't think about using ai for finances

Investing smartly is like choosing the right workflow platform. Pneumatic Workflow has been a great choice for us!

now im curious about changing my strategy too

ahh so thats how AI can be useful