This video isn’t actually Tom Cruise.

It’s a deep fake made with AI.

Let’s take a look at the world of AI and what it means for investors:
You’ve probably seen ChatGPT.

It’s an AI chatbot created by a company called OpenAI, which Microsoft is about to invest $10 billion into.
Venture capital is pouring into AI startups.

Plus, there are billions of dollars being invested by companies into building their own internal AI technology.
An AI content creation tool called Jasper raised $1.5 billion last year
ChatGPT got 1 million users in just 5 days.

For context, here’s how long it took other products to reach 1 million users:

Netflix - 41 months

Twitter - 24 months

Facebook - 10 months

Instagram - 2.5 months
Microsoft is looking to incorporate ChatGPT across its suite of products.

Google has been sounding alarm bells internally because this poses an existential threat to its search business.
ChatGPT can save humans countless hours of research.

Instead of having to dig through dozens of sources to get information, ChatGPT can give it to you instantly.
What use cases does ChatGPT have? Here are a few:

-Content creation

-Stock research

-Admin tasks like drafting emails

-Legal research

-Idea generation
AI isn’t just a category on its own.

It will infiltrate every sector of the economy. Companies that use it correctly will thrive, while companies that ignore it will be left behind.
If you own a business, AI tools like ChatGPT could be the best investment you make (especially because ChatGPT is free for now).

But the average person could probably save 5 to 10 hours a week's worth of work by using ChatGPT to help with research and writing.
So how do we profit from AI before it becomes better at investing than us and steals our jobs?

There are already several AI-centered ETFs, like the iShares Robotics & AI ETF $IROB

Several blue chip companies are already well-positioned to profit from the benefits of AI.

First that comes to mind is Microsoft, thanks to its investment in OpenAI.

As an investor, I’ll be on the lookout for companies that are utilizing AI to reduce expenses and improve efficiency.

I’ll be avoiding companies using “AI” as a buzzword just to pump their stock price (just like many did over the last few years with ‘blockchain’)
Having said that, I am a very happy $MSFT shareholder at moment!
Want more?

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The #1 FREE Finance newsletter on Substack!
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More from @GRDecter

Jan 13
Bank of America just posted a $1.1 billion provision for credit losses

JP Morgan’s was $2.3 billion

This is a very bad sign for the economy in 2023.

Let’s dive in 🧵
Banks reported good earnings results this morning

JP Morgan blew out EPS expectations with $3.57 earnings vs. $3.07 expected per share

Bank of America posted great revenue numbers thanks to higher interest rates
But shares of both banks declined just after results were released for a reason that has nothing to do with Q4 performance:

Provisions for credit losses.
Read 12 tweets
Jan 11
Crypto bank Silvergate is facing a bank run after working closely with FTX

But US taxpayers just footed the bill for a $4.3 billion loan to help the bank stay afloat

Is this really something the government should be doing? 🧵
Silvergate is facing a crisis.

Deposits fell from $11.9 billion to a low of $3.5 billion last quarter.

The company’s stock is down more than 90% in the last year.
Silvergate has scrambled to liquidate assets to meet withdrawal demands.

To help with the liquidity crisis, Silvergate took $4.3 billion in advances from the Federal Home Loan Bank (FHLB).

Read 9 tweets
Jan 9
Ken Griffin and Citadel PRINTED money last year

$28 billion in revenue and their flagship fund returned 38.1% in a year where most investors struggled.

How did they do it?

Let’s dig into their secrets 🧵
Citadel manages about $54 billion in assets

Its flagship fund, Wellington, returned 38.1% in 2022, better than just about any hedge fund.

In contrast, the S&P 500 lost about 19% during the same time.
How good was 2022 for Citadel?

So good that the company flew 10,000 employees out to Disney World for 3 days of fun
Read 12 tweets
Jan 9
Could this be the year?

That FINALLY, renewable energy has its day in the…sun?

With private and public capital flowing to the asset class and attractive unit economics things are looking brighter.

🧵👇
2/
Let's take a look at the business cases instead of this old man yelling at clouds:

3/
In investing, a winning strategy has frequently been to “follow the money.”

The Inflation Reduction Act (IRA) provides the US 10+ years of policy direction.

The IRA provides top-line investment funding of $369B for domestic producers and equipment manufacturers…
Read 18 tweets
Jan 6
The FED is NOT going to stop raising rates.

Here's why:
The labor market is still growing.

The rate of growth may be slowing, but jobs and wages are still increasing.

Read 8 tweets
Jan 5
In November, I warned that the "Bank of Bitcoin" was in trouble.

Since then, the stock is down 53%.

Here are the latest developments 🧵
If you missed my original thread from November, you can check that out below.

I outlined several warning signs that Silvergate was headed into a tailspin:

So what’s the latest?

Silvergate $SI is down more than 40% today thanks to news of massive withdrawals last quarter.

Deposits declined from $11.9 billion to $3.8 billion in just 3 months.
Read 10 tweets

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