TSI #36: How to invest in AI

Hello Stoic Investors,

Today I want to focus on the hottest topic right now. Artificial intelligence.

I spend a lot of time on the internet. And I’m sure you do too.

So, you must have heard of the newest AI sensation called Chat GPT.

Just look at the pace of its adoption.

This opens up a very important question.

Should you invest in AI?

Investing in artificial intelligence (AI) has the potential to be a lucrative opportunity, as AI is becoming increasingly prevalent across a wide range of industries.

However, most AI companies will fail.

Why?

Let’s compare it to the early 1900s.

The automobile industry experienced rapid growth and innovation in the early 1900s. Thousands of companies wanted to get a piece of the pie as it expanded. As expected, competition drove many companies out of business.

AI is currently experiencing a similar boom. While I might not know the future, I know that only a few companies will survive. And it’s impossible to know which. 

If you’re a risk-averse investor, I know how your brain works. This is what you’re thinking.

Can you still invest in AI without all the risk?

Individual stock picking in new industries is not something I’d recommend doing. The risk is just too great.

Luckily, I have a solution for you.

Investing in AI through ETFs can provide diversification and reduce risk compared to investing in individual AI companies, as the performance of the ETF is not dependent on the performance of any one particular stock.

Here are a few options: 

-Global X Robotics & Artificial Intelligence ETF

-ROBO Global Robotics and Automation Index ETF

-iShares Robotics and Artificial Intelligence ETF

-First Trust Nasdaq Artificial Intelligence and Robotics ETF

If you’re still wondering…

What about ChatGPT?

The owner of this chatbot is not a public company. Therefore, you can’t buy shares of it on the stock market.

However, I have a loophole for you.

Microsoft announced a $10 billion investment in ChatGPT owner Open AI. This means Microsoft will also partially own it. 

If you want to own a piece of ChatGPT then you might as well consider buying $MSFT.

It's important to note that the evolution of AI is still in its early stages, and its full potential and impact are yet to be determined. However, it might be an interesting opportunity for investors who love risk.

So, note down these points and start investing today: 

• A.I. will transform the world, but that doesn’t mean you have to invest in it
• The easiest way to invest in A.I. is through ETFs like $BOTZ