It Feels Like 1995 All Over Again – Part 2!

Yesterday I discussed a theme that I think will be huge over the next 10 years and beyond.  The investment theme is artificial intelligence (AI),or deep learning.  I think everyone should have some exposure in their portfolio.

Today, I am going to follow up with three investment ideas for those of you interested in getting exposure to this huge secular (market-speak for “long-term”) trend.  Without further ado, here we go:

  1. Tencent Holdings (OTCMKTS: TCEHY): $56.40. I know many of you may not have ever heard of this company before.  Tencent is a Chinese company, and it is an absolute beast!  It is the largest video game company on the planet, and it operates in the largest country in the world.  In America we have Facebook, Yelp and Uber; in China, Tencent is all of those apps wrapped into one.  They are dominant, and I’m confident that they will implement AI to become even more dominant.  AI is based on information.  He who has the most information has a competitive advantage…and no one has more information on its users than Tencent.
  2. Alphabet (NASDAQ: GOOGL): $1,126. Now, this is pretty pricey, at over a thousand dollars for one share.  But it may not look that pricey in 10 years.  I could not leave this off my list, because Google is one of the leaders in AI.  Right now, their self-driving platform is in the lead – if they are first to market, that could propel them to enormous growth.  The projections for the autonomous vehicle market are in the multiple trillions – yes, trillions!  Now I’m not saying that this will necessarily happen, but…Berkshire Hathaway looked very pricey back in 1983, at $1000 a share – and today it trades at $315,000 a share!  Imagine you’d invested in it back then?
  3. iRobot (NASDAQ: IRBT): $85.55.  Over the last two years, the best selling vacuum cleaner in America has been the Roomba.  iRobot manufactures the Roomba along with many other household robots that clean your floors.  People want convenience, and they want freedom…and that’s what the Roomba gives them!  It may not be the best product on the market, but it performs the job well enough to have become the top selling vacuum cleaner in the country!  We are without a doubt moving towards a Jetsons existence (link provided for those of you who aren’t old enough to know who the Jetsons are!).  I believe iRobot will continue to be a leader in the consumer robotics category for many years to come.  AI, or deep learning, will only improve their products’ performance, giving them a distinct competitive advantage.

In my opinion, these three companies are set to thrive over the next 10 years, and artificial intelligence will be a big reason why.  I would strongly consider making one, if not all, a part of your portfolio.

Until next time, Joes!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

It Feels Like 1995 All Over Again!

In 1995 – when the Internet was starting to enter the consciousness of most of America – who woulda thought??

Who woulda thought that we would go from dial-up services like AOL and Earthlink to broadband and fiber optic cables, dramatically increasing the speed and user experience for years to come?

I remember hearing plenty of people say that they would never use their credit or debit card to buy anything online.  Now these same people do at least 30% of their shopping online.  Who woulda thought?

How many people saw the Internet becoming the most transformative medium of their lifetime?  Not I.  I was asleep at the wheel, like most of us.  I watched, as a spectator, the two biggest trends in my lifetime – the introduction of personal computers and the emergence of the Internet – and I didn’t make a dime.

So, Janes and Joes – what’s the next big trend you should be looking for?  And how can you profit?

Keep your eye on a subsection of artificial intelligence (AI) called deep learning.

Bill Gates, the cofounder of Microsoft and a pretty good futurist, believes that AI will one day be the greatest technological advancement in human history.  Yes, human history.  That is an extremely bold prediction!  But given his track record for being able to see the future, I have to give it a great deal of credence.

So…what is deep learning?

Deep learning is when you program a computer to write code for itself based on mountains and mountains of information.  The more information the the computer has, the smarter it will become.

There are already many examples of AI in day-to-day life.  If you own a virtual home assistant like Google Home or Amazon’s Alexa, you are interacting with AI.  If you use the Roomba made by iRobot, you are experiencing AI.  Every time you go online and search for anything, and later start to see ads relating to what you’ve searched for, that is AI.

We are at the very early stages of this movement, and I believe it is going to be enormous!

The key to making the most money from a new trend is to get in on it early.  I think this is absolutely the perfect time to start investing in AI.  We probably have a two-year window before this technology explodes, so my advice is to start getting on board now!

Tomorrow, I will discuss three companies that will be major players in AI…so make sure to come back and read tomorrow’s post!

Until next time!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)