Mailbag from the sky

Mailbag from the sky

Where Innovation Meets Investing

Happy Monday from the sky.

I was in Nashville all weekend for a private summit on artificial intelligence (AI) at Vanderbilt University. I met with business leaders who’ve made it their prime directive to keep their companies 6–12 months ahead of the puck in leveraging AI.

AI has transformed their businesses, mostly for the better. My notebook is full of stories and ideas that I’ll share with you soon.

I see my job as keeping you, a RiskHedge member, 6–12 months ahead of the puck in investing in AI. AI is already transforming markets, mostly for the better. Investing in the right AI-related companies ahead of the crowd could be the defining decision of our investing lives. Nvidia (NVDA) is only a taste of what’s to come.

I’ll be landing in Boston shortly. I’m meeting with my partner Dan to discuss exciting plans for RiskHedge.

Today, I’d like to answer some recent questions you’ve sent me.

Let’s get after it…

  1. “I wanted to thank you for your May 6 Jolt where you recommended the calcium CT scan. I got one and it turns out my largest artery was 90% closed! I had no symptoms and exercise regularly. I just wanted you to know how grateful I am for your advice.”—Ralph

Wow. That’s incredible, Ralph! I’m glad you got the scan and are getting the issue sorted. Please keep me updated.

Last week, my neighbor dropped dead from a heart attack. He was just two years away from retirement. Maybe Eddie would still be with us if he had followed your lead.

Heart disease is the #1 killer in the world. But unlike many causes of death, it’s largely preventable and treatable.

Remember, a coronary calcium CT scan is a non-invasive test that measures the plaque buildup in your arteries. The more plaque you have, the higher your odds of heart attack.

 

Don’t be fooled into thinking cholesterol is the magic number that says whether your heart is fine. Half of people who suffer a heart attack have normal cholesterol levels and don’t have any prior symptoms.

Feeling okay doesn’t necessarily mean everything is okay.

I don’t know why every doctor isn’t nagging their patients to get a CT scan. Maybe you can enlighten me.

Let’s make a deal, reader. I’ll book a CT scan in the next month. You do it, too. Okay? All it takes is $100–$200 and 30 minutes to potentially save your live.

I’m all about making money. But what good is a thriving portfolio if you’re sick or dead?

  1. “Your essay on Google a while back made me think critically about its position as AI accelerates. But based on Google’s performance since then, your take hasn’t aged well. You can’t get them all correct, so keep up the good work.”—Joe

Looks like I turned bearish on Google (GOOG) too early, Joe. Its stock has climbed around 40% since we last talked about it.

I like measuring Google’s performance relative to other AI stocks you can own.

For example, Nvidia (which I first recommended 5+ years ago) is up 5X more than Google this year. Most of our AI holdings in Disruption Investor are also outpacing the tech giant.

Your question also hints at the importance of where to invest.

You can buy companies building the AI models, like Google or ChatGPT creator OpenAI. All these AI models are losing money today. It’s a very competitive race and hard to pick a winner.

Then you have the AI data center “plays” like Microsoft (MSFT), Amazon (AMZN), and Google (again).

But the no-brainer way to profit from AI today is to buy the AI infrastructure winners.

Remember, big tech companies will spend more than $170 billion building AI computing farms this year alone. You want to own the companies drinking from this firehose of money. That’s what we’re doing in Disruption Investor.

  1. “Do you have any idea which of the Ethereum ETFs will be the best ones to own when they start trading? Thanks for all of your insights.”—Ray

BlackRock (BLK) will likely have the most popular Ethereum (ETH) ETF, like it does with bitcoin. But you don’t have to wait until it launches to invest.

A thing I love about crypto is it’s one of the few markets where the “little guy” can get the upper hand on Wall Street, provided they have good information and guidance. Buttoned-up bankers can’t touch crypto (besides bitcoin) today due to regulatory uncertainty.

You and I don’t have that constraint. That allows us to get in on the ground floor in many of today’s most exciting crypto opportunities.

The best way to invest in Ethereum is to own it directly. You can buy ETH on any crypto exchange today. My research suggests it will trade much higher leading up to the ETF launch, which I’m hearing will happen sometime in the coming weeks.

  1. “I gave my four children (ages 8–14) phones and laptops they can use to do homework, use ChatGPT, play chess, etc. But I use an app called EverAccountable that gives me daily reports on what they did on the devices. By giving them full access but telling them I expect them to use the tools responsibly, so far, the results seem to be very good. They are happy children, do their work, and then go out and play with friends.”—Andries

I like your approach, Andries. I’ll have to check out EverAccountable.

Parents are guinea pigs in a social experiment right now. We’re trying to figure out the right dose of digital technology for kids. A few thoughts…

Giving kids access to social media before the age of 16 is a “hard no.” Instagram will rot their brain. We have multiple studies showing this. But really, we don’t need studies. I’ve seen enough kids’ brains hijacked by this toxic sludge.

Should the government get involved? My default answer to that question is usually, “Please, no.” Smartphones and kids may be an exception.

Being the parent who tells their child they can’t have a smartphone when all their friends have one is hard. They will feel left out and blame you.

It will be a lot easier if parents stand unified. I think a law could help.

See you Wednesday.

Stephen McBride
Chief Analyst, RiskHedge

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