Investing In Artificial Intelligence 2018. Anyone Have Any Ideas?

machinelearning
ai
investing

#1

I want to allocate some of my portfolio to artificial intelligence…

Does anyone have any ideas?


#2

I think AI is in its infancy at the moment, but you can invest in the tech in a variety of ways…

The most obvious way of investing is through mutual funds, or ETFs. Personally, I would avoid ETFs, or at least I wouldn’t invest unless I was sure the company was good. The product could be great, but the company could have very questionable…

Another obvious answer would be involve investing in big tech. Mark Cuban recently admitted that his largest holding was Amazon. I think bettign on big tech is dangerous though. BT is already powerful, if the FAANGS became leaders in AI, they would be regulated to an insane degree. Also, everyone is jumping in to FAANG stocks…

I would invest in something a little off kilter, but which would benefit from AI. My idea was investing in Coca Cola:

Another good shout could be investing in Venture funds with significant exposure to AI. The real money is in funding AI start-ups from the beginning and catching that fat-tail growth. VCs are already pouring money into AI and things are only going to more profitable. As a result, the growth forecasts for the next few years are insane

I will finish by saying that investments are correlated to what others are doing in the market. If everyone is investing in the same idea, it is no longer succcesful. The bdest example of this is college endowment funds. These funds were investing in Venture Capital, Timber, Private Equity in the 1980s and everyone thought they were crazy. When they started generating mega-returns, every college endowment funds jumped in. Today, the returns are nothing close to the original.

My point:

Everyone is thinking about investing in AI and everyone is thinking about betting on AI FAANG stocks. You need to come up with a different angle. Or you’ll get average returns

FT reference article (paywall):