Hello readers.
Think back to January 2000.
The internet was becoming the next big thing, the recession was a year away, the dot-com bubble was inflating, and wide-leg jeans were in style.
This probably sounds a little like the situation today.
But more than 20 years ago, investors I knew Their belief that the Internet would change the world drove the market capitalization of the top five tech stocks to record highs…
- Microsoft Corporation (MSFT) $600 billion
- Cisco Systems, Inc.Central Intelligence Agency) $316 billion
- Oracle Corporation (Orks) $308 billion
- Intel Corporation (International Trade Commission) $275 billion
- IBMIBM) $188 billion
At the time, all of this felt perfectly reasonable.
These five companies represented the top software, hardware, and infrastructure companies of the time. These companies were clearly the main drivers of the Internet era, and investors were happy to buy these stocks no matter the price.
However, these companies were unable to maintain their lofty valuations, and all but IBM’s stock prices fell over the next decade — in fact, Cisco and Intel stocks are now trading at lower prices than their peaks in 2000.
In fact, rising stock prices tend to deprive future investors of profits. If a stock rises 10% today, The usual means 10% few There’s room for upside tomorrow, and even the fastest-growing companies can take decades to “fill” their inflated market valuations — or if they ever will.
The reverse is also true: Of the 361 S&P 500 companies that made it through the 2000s without merging or going bankrupt, here are the five best-performing companies of the decade:
- Computer manufacturer on the verge of bankruptcy: Apple Inc. (AAPL) +720%
- Construction company: McDermott International Inc.MDR) +695%
- Fossil fuel companies: Occidental Petroleum CorporationOxy) +652%
- Rail: Kansas City Southern (KSU): +609%
- And the oil drillers: APA Corporation (Apa) +545%
With the exception of Apple, most of the top companies there is nothing Something related to the Internet.
Instead, these were high-performing companies that were simply sold off during the dot-com boom as investors needed cash to buy up expensive tech stocks. Of the 30 top performers of the 2000s tracked by financial-market-data provider Refinitiv, 29 were nontech companies.
Just as the internet boom has created some surprising winners, The road to general artificial intelligence (Versatility).
AGI is when an AI acquires “generalized” cognitive abilities and is able to achieve superhuman cognitive capabilities.
To explain further, consider another industry where it’s relatively easy to imagine the need for AI: self-driving cars.
The real winners on the road to AGI
At first glance, the road to AGI might seem to involve winners like automakers. General Motors (GM)and the losers are ride-sharing companies. Uber Technology Inc.Uber).
But a closer look at the industry suggests that the opposite may be true if autonomous vehicles (AVs) do indeed arrive: Ride-sharing companies could be the winners and automakers the losers.
Here’s why…
Automakers have long recognized that cars are parked roughly 95% of the time. Most vehicles are needed to meet demand and can’t move on their own, so we simply leave them in driveways and parking lots.
But what if it were possible?
Theoretically, one car could drop off one person for the morning commute, go home and take another family member grocery shopping, take another to daycare, etc. If one car could be shared with multiple family members or neighbors, it could eliminate the need for 1.8 cars per household.
Consultancy Oliver Wyman estimates that self-driving cars could reduce net demand for cars by as much as 15% by 2035. Using Auto prices will rise, so it’s no wonder GM is rushing to develop self-driving cars: Missing out on the self-driving revolution would be disastrous for the automaker, given the high fixed costs of production.
Meanwhile, ride-sharing company Uber realized it was unlikely to be replaced by autonomous vehicles and sold its self-driving division in 2020. Instead, ride-sharing companies stand to benefit from AGI, because it could soon become a marketplace for these services: Why buy a Tesla Robotaxi when Uber can deliver the closest car for the cheapest price?
In other words, if ride-sharing companies like Uber operate well, They The biggest beneficiaries on the road to AGI will not be the automakers who ultimately perfect self-driving cars, but startups.
At a special event next Thursday, The Road to the AGI Summit (Join here) I’m going to share my top stock ideas for investing in AGI, a fast-growing startup with virtually limitless potential on the path to AGI, plus provide you with a “future-proof” blueprint for preparing for this rapidly evolving landscape.
AGI is reaching a point of no return in the development of AI technology, making this event crucial for anyone wanting to get ahead and benefit from this coming technological revolution.
For more information, The Road to the AGI Summit On Thursday, August 22nd at 1pm ET.
Click here to reserve your seat.
Thank you very much.
Eric Fry
