By Charles Mizrahi, Banyan Hill Publishing, 2024-06-12
To know and not to act is not to know.
You could do all the research in the world … and know more than the experts … but if you don't act on it, it's like you never did anything.
- You “knew” that NVIDIA (NYSE: NVDA) was going to have the best chip for AI in 2019 … but didn't buy the stock?
You knew nothing as shares rose more than 3,000%.
- You “knew” that Apple's (NASDAQ: AAPL) iPhone would usher in a new age in tech … but didn't buy the stock?
You knew nothing as shares rose more than 5,000%.
- You “knew” Amazon (NASDAQ: AMZN) was going to dominate e-commerce and then cloud … but you didn't buy the stock?
You knew nothing as shares rose more than 190,000%.
The thing is, I've seen so many investors make this mistake since I started doing this in 1983.
Even if you give them tomorrow's newspaper, they will still find a way to lose money. That's because they don't act.
And I don't want this to be you.
I really can't even understate this… It's one of the biggest mega trends of my lifetime.
In 2019, I talked about it — calling it one of the biggest transformations of my lifetime.
Artificial intelligence (AI).
And this was four years before anybody had ever heard of ChatGPT.
Back then, NVIDIA (NYSE: NVDA) was just a $110 billion company. Nobody ever expected it to become the $2 trillion giant it is today.
AI's potential contribution to the global economy by 2030 is in the neighborhood of $15.7 trillion.
And those are the lowest numbers I'm seeing!
Think about it. The United States' GDP is around $23 trillion. So this is about 70% of U.S. GDP.
That's how huge AI was going to be…
⬆️ Riding the AI Wave for 627% Growth
I wanted in before the crowd. Because the biggest gainers happen in the early innings of a mega trend.
So, in 2019, I started positioning the Alpha Investor portfolio with great companies to profit from this once-in-a-generation mega trend.
We added chipmakers, data center providers and equipment makers.
I even talked to former governor Mike Huckabee about one of my recommendations: Arista Networks (NYSE: ANET).
I saw how AI would drive cloud computing and that Arista was going to be the big winner.
Here's a look at our conversation:
I mentioned this growth could happen over the next decade … but I was a bit too conservative. It only took three years.
Cloud grew by leaps and bounds and Arista grew even faster.
We're up more than 648% with Arista.
And I want to tell you something: It still has room to continue growing.
That's what happens when you find great businesses in the very early innings of a huge mega trend.
I know what's going to happen, I just don't know when it's going to happen.
And when it comes to AI, we're STILL in the early innings. So, what's on the horizon for 2024?
The Era of AI 2.0
Gigantic Tech
I have been thinking a lot about this over the past year. The opportunities today are not so obvious.
That's what I love about them because that's what makes them much more profitable.
In fact, I see two big areas where many people are still underpricing the stocks.
The first one is what I call “gigantic tech.” Those are companies with market caps in the trillions of dollars.
Investors are discounting how far ahead these companies are in AI and the enormous profit potentials they offer.
Not only do they have the know-how and the amazing brain power to make AI accessible — for example, they are going to make AI a part of our daily lives.
And they have enormous amounts of money. Companies with lots of money — I have found in life — can do pretty amazing things.
