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Should You Be Investing in Tech and AI? · She's On The Money

• 0:00
  Speaker 1: Hello, my name is Satasha Nabananga Bamblet. I'm a proud
• 0:04
  Speaker 1: or the Order Kerni Whaltbury and a waddery woman. And
• 0:08
  Speaker 1: before we get started on She's on the Money podcast,
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  Speaker 1: I would like to acknowledge the traditional custodians of the
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  Speaker 1: land of which this podcast is recorded on a wondery country,
• 0:18
  Speaker 1: acknowledging the elders, the ancestors and the next generation coming
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  Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
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  Speaker 1: and the storytelling of you to make a difference for
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  Speaker 1: today and lasting impact for tomorrow.
• 0:33
  Speaker 2: Let's get into it.
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  Speaker 3: She's on the Money, She's on the Money.
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  Speaker 4: Hello, and welcome to She's on the Money, the podcast
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  Speaker 4: that knows. Investing in innovation sounds hot, but losing all
• 1:03
  Speaker 4: your money on hype is not.
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  Speaker 2: Are you getting fomo? An it was your delivery? Do
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  Speaker 2: you like it was? Like you were questioning whether you
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  Speaker 2: should say it or not. You're like, it is hot.
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  Speaker 4: It is not true because my whole life I've learned
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  Speaker 4: that hype is exciting and fun. But I'm now learning, wow,
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  Speaker 4: it's not hot. Are you getting fomo and feeling like
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  Speaker 4: you should be investing in AI? Even if you're not
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  Speaker 4: one hundred percent short it actually does. Or are you
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  Speaker 4: wondering whether this is the next big opportunity or just
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  Speaker 4: another tech bubble waiting to burst.
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  Speaker 2: Well, you're in luck because we're diving deep into the world.
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  Speaker 4: Of tech stocks and AI and what's real, what's risky,
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  Speaker 4: and what you need to know before you drop your
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  Speaker 4: savings into the next shiny thing. I'm excited your co
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  Speaker 4: host here to ask, wait, what does that mean? So
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  Speaker 4: you don't have to. I'm joined by the woman who
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  Speaker 4: actually knows what she's talking about, Victoria Divine. Hi, Victoria, Hello, Beck.
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  Speaker 4: I am as always budding into your intros. I do apologize,
• 1:59
  Speaker 4: but I am there very excited to talk about this.
• 2:02
  Speaker 4: I really wanted to do this episode because I get
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  Speaker 4: so many dms from people being like should I be
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  Speaker 4: investing in AI? And like, most of the time, I
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  Speaker 4: don't mean to be rude. Do you even know what
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  Speaker 4: AI is? Like obviously artificial intelligence, but like how does
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  Speaker 4: it work? What does that mean? And if you were
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  Speaker 4: going to invest into it, do you know what stocks?
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  Speaker 4: Or have you just been watching TikTok's right? Like I
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  Speaker 4: swear most of people's I guess investing knowledge comes from TikTok,
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  Speaker 4: and that is so fine because same clean like.
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  Speaker 2: TikTok rules my life.
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  Speaker 4: But I think something that social media is really good
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  Speaker 4: at is making us feel like we're missing out on something. Yeah,
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  Speaker 4: oh yeah, how many times have you seen like one video?
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  Speaker 4: You watched it like full, and then you just keep
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  Speaker 4: getting served the same stuff, so you keep thinking, oh
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  Speaker 4: my god, this is like the next big thing, But
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  Speaker 4: it's actually just your algorithm picking up on what you
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  Speaker 4: were interested in and serving you more of. It doesn't
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  Speaker 4: necessarily mean it is a good thing, right.
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  Speaker 2: Not necessarily No, Yeah, that's see what you're saying.
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  Speaker 4: So let's start at the beginning of what actually makes
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  Speaker 4: a company tech share because right now it feels like
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  Speaker 4: every company is throwing around the word AI. So I
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  Speaker 4: guess if we strip it all the way back, a
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  Speaker 4: tech share or a tech company is a share in
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  Speaker 4: a company whose core business is technology. So that could
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  Speaker 4: be literally so many things. It could be software, it
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  Speaker 4: could be hardware, it could be artificial intelligence, it could be.
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  Speaker 2: Cloud computing or robotics.
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  Speaker 4: And you guys probably have heard a lot of the
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  Speaker 4: names before, but we've got things like Apple and Microsoft
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  Speaker 4: and Navidia and Amazon and Meta that's Facebook, Beck and Alphabet,
• 3:34
  Speaker 4: that's Google, and Tesla. So we already know that these
• 3:39
  Speaker 4: things exist. You've heard of them. And sometimes I've just
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  Speaker 4: listed off seven different companies Beck. Sometimes they're actually grouped together.
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  Speaker 4: They specific seven, and they're called the Magnificent Seven because
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  Speaker 4: of how much they actually dominate the US market, which
• 3:53
  Speaker 4: is kind of interesting when.
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  Speaker 2: You start to get into it.
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  Speaker 4: They actually make up so these seven shares make up
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  Speaker 4: thirty five percent of the entire SMP five hundred. So
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  Speaker 4: the SMP five hundred is a list of the top
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  Speaker 4: five hundred companies in America, and they make up thirty
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  Speaker 4: five percent of that, which I think is absolutely wild.
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  Speaker 4: And since the start of twenty twenty three, they've actually
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  Speaker 4: driven more than seventy percent of the entire market's returns.
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  Speaker 4: So that's a lot of marketwight sitting on literally seven companies,
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  Speaker 4: which is probably why people are genuinely so interested in
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  Speaker 4: going should I be investing in this? Because like that
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  Speaker 4: seems pretty dramatic, Like if you're telling me these seven
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  Speaker 4: companies are driving seventy percent of the index's returns and
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  Speaker 4: then also make up thirty five percent of the entire
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  Speaker 4: SMP five hundred. Like, okay, right in twenty twenty five,
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  Speaker 4: should we be doing that or if things taken a turn?
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  Speaker 4: Let's see, I wonder if there's an ETF that just
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  Speaker 4: is comprised of those seven companies. Yes, it's called the
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  Speaker 4: SMP five hundred. No, just those seven, just those seven. Yeah,
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  Speaker 4: it definitely is there.
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  Speaker 2: Definitely is.
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  Speaker 4: I thought you meant like of all of those and
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  Speaker 4: I was like, babe, yes, that's why it's called the
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  Speaker 4: SMP five hundred.
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  Speaker 2: It's actually very clear. I didn't steal what you say,
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  Speaker 2: but no, I'm just kidding.
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  Speaker 4: So what's actually changed is just like the hype dying
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  Speaker 4: down or something more. Okay, So in twenty twenty three
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  Speaker 4: and twenty twenty four, I think everyone started getting really
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  Speaker 4: excited about AI. It started to become something that you
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  Speaker 4: were discussing at home as opposed to just Tesla. Like
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  Speaker 4: remember when we were talking I don't know, maybe like
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  Speaker 4: between twenty twenty and twenty twenty two about the self
• 5:34
  Speaker 4: driving car. Yeah, right, So it was all aspirational. It
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  Speaker 4: was all stuff that you know, Elon Musk was doing.
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  Speaker 4: It wasn't stuff that you could do a homeback like
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  Speaker 4: you would just be like, that's so interesting. AI is
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  Speaker 4: going to change the world. And then after chat gpt launched,
• 5:49
  Speaker 4: beck you could do it at home, like we've got
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  Speaker 4: AI at homeback, And so what that meant was you
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  Speaker 4: could start to see how impactful this was. Whether you
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  Speaker 4: were using chat gpt to just answer a few questions
• 6:01
  Speaker 4: about maths or explain the share market to me, or
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  Speaker 4: make this letter seem more professional. People started to really
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  Speaker 4: believe in what AI could do, and they could literally
• 6:13
  Speaker 4: feel it.
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  Speaker 2: They could see it.
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  Speaker 4: They could see how this change was going to impact
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  Speaker 4: the market or impact even their daily jobs.
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  Speaker 2: Like people started.
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  Speaker 4: Being like, oh am I going to be replaced because like,
• 6:24
  Speaker 4: you know, you could say to chat gpt, hey could
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  Speaker 4: you write a really nice email, and like it could right.
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  Speaker 4: So stocks like Navidia and Meta and Microsoft absolutely surged,
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  Speaker 4: not because of their current earnings, but because people started
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  Speaker 4: seeing that. People started going, oh AI is pretty cool,
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  Speaker 4: and those companies are using AI pretty predominantly, like we've
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  Speaker 4: spoken about recently, obviously chat gpt, but like Microsoft now
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  Speaker 4: has co pilot and such. But investors are now asking
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  Speaker 4: where's the revenue, where's the return? So all of this
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  Speaker 4: urged because we were excited. But that's market sentiment, right, like,
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  Speaker 4: oh my god.
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  Speaker 2: I want that.
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  Speaker 4: And if lots of people start buying one particular type
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  Speaker 4: of asset, the market goes, oh, let's increase the price
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  Speaker 4: because it's quite popular. But there's no increased earnings yet.
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  Speaker 4: It's all just like hopes and dreams. I see, and
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  Speaker 4: hopes and dreams don't pay the bills back. So people
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  Speaker 4: start asking questions when the bills aren't getting paid really
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  Speaker 4: quickly and going, hold on, where's the money in all
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  Speaker 4: of this? And so now there was a report that
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  Speaker 4: came out recently from the Bank of America and I
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  Speaker 4: actually said, we expect AI to be transforming from a
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  Speaker 4: tell me to a show me story, with any disconnect
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  Speaker 4: between investments and revenue generation to come under intense scrutiny,
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  Speaker 4: which I think is definitely happening. So now companies can't
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  Speaker 4: just talk about innovation. They actually have to back it
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  Speaker 4: up with results. Like Okay, before you could just launch CHATJPT.
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  Speaker 2: You'd be like, Wow, that's really cool. We've seen it.
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  Speaker 4: Now, so if you want to launch something similar, I'm
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  Speaker 4: going to need to see some revenue. I'm going to
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  Speaker 4: need to see some results Otherwise, that's.
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  Speaker 2: Not that interesting. Like, don't get me wrong, it's very
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  Speaker 2: very interesting. I'm not being rude.
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  Speaker 4: I'm just talking from a investment mindset, right, So I
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  Speaker 4: think there's just a lot up in the air because
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  Speaker 4: people are now like, Okay, cool, so I invested in
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  Speaker 4: this thing where am I returns chop shop?
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  Speaker 2: M you mean the same, right? Yeah, totally, totally.
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  Speaker 4: It kind of feels like there are lots of ups
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  Speaker 4: and downs in the tech and AI sector. Oh absolutely.
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  Speaker 4: I feel like it's like a little roller coaster. And
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  Speaker 4: the tech sector obviously is incredibly powerful. We know that
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  Speaker 4: that magic seven carry seventy percent of the returns, which.
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  Speaker 2: Is very interesting. But one of the reasons.
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  Speaker 4: Is because tech moves so quickly, and that's what makes
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  Speaker 4: it really exciting but also really volatile. And volatility. The
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  Speaker 4: word volatility, it literally just means the ups and downs.
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  Speaker 4: So anytime someone says volatility, think of a roller coaster,
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  Speaker 4: because it just is how much the share price of
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  Speaker 4: something increases and then decreases, and then increases and then decreases.
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  Speaker 4: And the more exciting that asset, the bigger and the
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  Speaker 4: bougier the roller coaster. Right, So, like if you go
• 9:13
  Speaker 4: to the like to my friends, I've explained it like Disneyland, right, So,
• 9:17
  Speaker 4: like you go to Disneyland and that's the share market
• 9:19
  Speaker 4: and we go to the like kids section and you
• 9:21
  Speaker 4: get on the Teacups. Yes, and like that's kind of fun,
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  Speaker 4: very expected, Like is something on the Teacup ride going
• 9:28
  Speaker 4: to happen that you weren't anticipating?
• 9:30
  Speaker 2: Probably not. It's going to have been around, going to
• 9:33
  Speaker 2: do the job.
• 9:34
  Speaker 4: Everyone's welcome, you can put your grammar on it, you
• 9:36
  Speaker 4: could put your three year old on it. Everyone's happy,
• 9:39
  Speaker 4: everyone's good. Then we're going to go to the other
• 9:41
  Speaker 4: side and we go into the wild West. Beck Okay,
• 9:43
  Speaker 4: going to the Wild West. Still in Disneyland, still is
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  Speaker 4: share but we don't actually know what happens once you
• 9:49
  Speaker 4: get on that roller coaster because it's behind the thing.
• 9:52
  Speaker 4: You know, when you like see the Wild West ride
• 9:54
  Speaker 4: and all you see is the people coming out of
• 9:56
  Speaker 4: the top of the mountain and straight down into the water.
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  Speaker 2: Yeah yeah, yeah, yeah, but you can't.
• 10:00
  Speaker 4: See how many ups and downs are before that. But
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  Speaker 4: that's way more exciting. Yeah, that's very true. The more
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  Speaker 4: exciting an asset, the more excited you are about seeing
• 10:09
  Speaker 4: something or going on the ride, the more ups and
• 10:12
  Speaker 4: downs you've got to anticipate.
• 10:13
  Speaker 2: The teacup is maybe like cash. Yeah, teacup might be cash.
• 10:16
  Speaker 4: It might be a little bit of a bond. Like
• 10:19
  Speaker 4: it's keeping as comfy. It's very predictable. I love Disneyland.
• 10:24
  Speaker 4: I love a Wild West ride. You know, I went
• 10:28
  Speaker 4: on the Giant Drop at Movie World when it was
• 10:30
  Speaker 4: a thing.
• 10:31
  Speaker 2: Is the Giant Drop still a thing? I don't know.
• 10:32
  Speaker 4: But I hate those ones. But I know exactly what
• 10:34
  Speaker 4: which one you're talking about. But you've got to expect
• 10:36
  Speaker 4: a lot of up and down in a lot of volatility.
• 10:39
  Speaker 4: So when we think volatility, we're thinking roller coasters.
• 10:43
  Speaker 2: And if you want it to be an exciting.
• 10:45
  Speaker 4: Roller coaster or an exciting asset class, it has to
• 10:47
  Speaker 4: go up and down and you've got to be prepared
• 10:49
  Speaker 4: for that. Yeah.
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  Speaker 2: Right, so we're getting prepared.
• 10:52
  Speaker 4: But I actually spoke back to a money direst who
• 10:55
  Speaker 4: worked in tech only God, it was so interesting, literally
• 10:58
  Speaker 4: the amount of money people are making in tech.
• 11:00
  Speaker 2: Click.
• 11:00
  Speaker 4: If you've been thinking, maybe I need to change my job,
• 11:02
  Speaker 4: you probably should just go into tech. And while she
• 11:05
  Speaker 4: had a really great salary, like literally Beck, she had
• 11:09
  Speaker 4: like a salary of like three hundred thousand dollars plus
• 11:11
  Speaker 4: she was being issued shares and she was making about
• 11:13
  Speaker 4: half a million.
• 11:14
  Speaker 2: Dollars is ish a year. Oh my god, that's insane.
• 11:16
  Speaker 4: Ride. And she literally just worked her way up, like
• 11:20
  Speaker 4: she didn't have some fancy degree, Like she didn't do
• 11:22
  Speaker 4: a degree, but it wasn't the reason for her success anyway.
• 11:25
  Speaker 4: You can go listen to that money diary. Half her
• 11:28
  Speaker 4: team will literally laid off within.
• 11:30
  Speaker 2: The first few months of her starting. Oh, like that's scary. Yeah.
• 11:34
  Speaker 4: Like, So not only are the asset classes scary for
• 11:37
  Speaker 4: people purchasing them, but for the people working in them.
• 11:40
  Speaker 4: There's also a lot of volatility, and the same like
• 11:43
  Speaker 4: literally goes for stocks. You can like have a great
• 11:46
  Speaker 4: run and then you can lose a chunk of your
• 11:48
  Speaker 4: value in a couple of weeks. So I think, yeah,
• 11:51
  Speaker 4: let's think about Disneyland and the different types of rides
• 11:54
  Speaker 4: they have, And if you want to be in tech,
• 11:57
  Speaker 4: you've just got to be accepting that the rollercos is.
• 12:00
  Speaker 2: A little bit more wild. You might have a bit
• 12:02
  Speaker 2: more fun, though that is the risky take. So if
• 12:05
  Speaker 2: we want to.
• 12:06
  Speaker 4: Talk about I feel like Navidia I did a whole
• 12:08
  Speaker 4: podcast on this. But Navidia is a good example and
• 12:11
  Speaker 4: one that we've spoken about in the past. This company
• 12:14
  Speaker 4: has been I guess, the poster child for the AI boom,
• 12:18
  Speaker 4: Like everyone is talking about it, everyone being me and
• 12:22
  Speaker 4: everyone in the investing space. Maybe you haven't been talking
• 12:25
  Speaker 4: about it at your dinner table, but it was of
• 12:28
  Speaker 4: hot topic I guess in twenty twenty three, twenty twenty four.
• 12:31
  Speaker 2: And the reason they.
• 12:32
  Speaker 4: Have been I guess so popular is because they make
• 12:37
  Speaker 4: like little computer chips, and those computer chips are basically
• 12:41
  Speaker 4: the brains of all of the AI models, so like
• 12:45
  Speaker 4: chat GPT needs these chips to function, So obviously, with
• 12:49
  Speaker 4: the rise of people using chat GPT, the video is
• 12:52
  Speaker 4: going to increase in price. And even big tech company
• 12:55
  Speaker 4: is like open Ai and Microsoft and Meta, they were
• 13:00
  Speaker 4: buying Navidia's GPUs by the truckload to essentially power their
• 13:05
  Speaker 4: data centers. So that tells me that if all of
• 13:08
  Speaker 4: those remember the Big Seven, obviously Navidia is one of them,
• 13:11
  Speaker 4: but if the other companies in the Big seven are
• 13:13
  Speaker 4: purchasing from Navidio, you go, oh, someone's been cooking here,
• 13:17
  Speaker 4: Like what's going on? So naturally, Navidia's share price then
• 13:22
  Speaker 4: started to go through the roof, up over two hundred
• 13:26
  Speaker 4: percent at one point. Beck based mostly on what people
• 13:30
  Speaker 4: believed AI could become, not proof, just like they started
• 13:34
  Speaker 4: seeing the big dogs getting on the big rides and going, well,
• 13:37
  Speaker 4: if they're comfy, I want to be on the big ride.
• 13:40
  Speaker 2: But it was all just belief because you were seeing
• 13:43
  Speaker 2: people walk the walk.
• 13:44
  Speaker 4: But we hadn't heard much about revenue, we hadn't seen
• 13:47
  Speaker 4: a lot of income yet.
• 13:48
  Speaker 2: It was all just this is the next big thing, Beck.
• 13:52
  Speaker 4: But someone comes knocking and says, hey, are you paying
• 13:54
  Speaker 4: your bills? And you go, well, I haven't been paid
• 13:56
  Speaker 4: babies as sets yet, so you're going to start asking questions.
• 13:59
  Speaker 4: But obviously I'm on a little bit of a rant,
• 14:02
  Speaker 4: and I do apologize and you can ask the questions
• 14:03
  Speaker 4: in a hot second, but it does get a little
• 14:06
  Speaker 4: bit messy. So this like cossip podcast. Now are you ready?
• 14:09
  Speaker 4: So there's a Chinese company called deep Seek. You might
• 14:12
  Speaker 4: have heard about it, and it came out of literally nowhere,
• 14:15
  Speaker 4: and it launched a competitive AI model that used way
• 14:19
  Speaker 4: less GPU. So these chips, the power chips, it used
• 14:22
  Speaker 4: a lot less GPU power, meaning they needed less of
• 14:26
  Speaker 4: the chips, so everyone was like, oh, what is deep Seek?
• 14:30
  Speaker 4: How does that work? And that got investors really spooked.
• 14:33
  Speaker 4: So people started being like, oh my god, like I
• 14:36
  Speaker 4: just invested in this other AI thing. But now Deep
• 14:38
  Speaker 4: Seeks come out, and I feel like we all know
• 14:41
  Speaker 4: that the Chinese people are really, really smart, so when
• 14:44
  Speaker 4: something comes out of China, you go okay, like their
• 14:47
  Speaker 4: tech sector is really impressive. And suddenly people were asking
• 14:50
  Speaker 4: all these questions like have we just been over investing
• 14:53
  Speaker 4: in something that might actually not be necessary, like because
• 14:56
  Speaker 4: Deep Seeks come out and said, hey, our take use
• 14:58
  Speaker 4: this way less of these cheer and now we're all like, wait, wait, wait,
• 15:02
  Speaker 4: did we jump the.
• 15:02
  Speaker 2: Gun a little bit?
• 15:03
  Speaker 4: But now we are seeing the impacts and America has
• 15:07
  Speaker 4: a lot to do with this, but we're now seeing
• 15:08
  Speaker 4: the impacts of Trump's trade war. So he's the drama
• 15:12
  Speaker 4: like he is being drama and I don't appreciate it.
• 15:15
  Speaker 4: I don't think many people appreciate it. But on top
• 15:17
  Speaker 4: of his ridiculous tariffs at the time of recording, America
• 15:20
  Speaker 4: has also put export restrictions on high end chips going
• 15:25
  Speaker 4: to Chinah and then China were like absolutely not and
• 15:29
  Speaker 4: then they fired back by blocking exports of critical minerals
• 15:33
  Speaker 4: that are needed to make those chips. So like, good
• 15:36
  Speaker 4: luck making the chips if you can't get the minerals to.
• 15:38
  Speaker 2: Make them grow. Yeah, that's what I mean. Like it's
• 15:41
  Speaker 2: a bit of a gossip podcast, and do you know
• 15:42
  Speaker 2: what that meant?
• 15:43
  Speaker 4: So the result of that is that analysts believe I
• 15:47
  Speaker 4: do too after reading their work, but like they did it,
• 15:49
  Speaker 4: not me, but analysts believe Navidia is now sitting on
• 15:54
  Speaker 4: five point five get this, five point five billion dollars
• 15:58
  Speaker 4: worth of advanced chips it built for China, but they
• 16:01
  Speaker 4: can't sell without US government approval. Oh so they can't
• 16:05
  Speaker 4: sell GI Yeah, and.
• 16:06
  Speaker 2: The government's like absolutely not.
• 16:07
  Speaker 4: That's not leaving because we are the drama and we
• 16:10
  Speaker 4: are starting all of this shit anyway, that's obviously quite stressful.
• 16:15
  Speaker 4: But because this is going around and like Navidia hasn't
• 16:18
  Speaker 4: confirmed to this because it's like, you know, I'm not
• 16:20
  Speaker 4: going to confirm whether you cheated or not, Like it's
• 16:23
  Speaker 4: not going to happen. These are just analysts who are like, okay,
• 16:27
  Speaker 4: like we know what their production looks like, we're going
• 16:29
  Speaker 4: to guess how much they have in their stocks, so
• 16:33
  Speaker 4: five point five is the guest. But because that's being
• 16:36
  Speaker 4: discussed in the market, their stock has now fallen around
• 16:39
  Speaker 4: eighteen percent, so people are like, oh, that's true, that's stressful.
• 16:44
  Speaker 4: Like if Navidio is holding all of these chips and
• 16:46
  Speaker 4: can't sell them, like, that's not good, which means their
• 16:49
  Speaker 4: income is going to go down, And some of that
• 16:51
  Speaker 4: hype around how good Navidia is it started fade. People
• 16:55
  Speaker 4: just don't care as much anymore because they're like, h like,
• 16:58
  Speaker 4: Navidio can't even sell their chips, right, Like why would
• 17:01
  Speaker 4: you continue to invest in them? And investors are really
• 17:04
  Speaker 4: starting to ask, well, is this a short term bump
• 17:06
  Speaker 4: or should we be rethinking this whole thing long term?
• 17:09
  Speaker 4: Like should we be looking for other companies to invest
• 17:11
  Speaker 4: in because we like the idea of AI but like
• 17:15
  Speaker 4: there's a lot of political drama around this particular one,
• 17:18
  Speaker 4: so people are.
• 17:19
  Speaker 2: Investing less into Navidia. Does that make sense? It does
• 17:23
  Speaker 2: make sense. It's a lot to take in. Yeah, I
• 17:26
  Speaker 2: feel like that's why I'm like, it's a gossip podcast.
• 17:28
  Speaker 4: You need to understand all of the amsing cuts, and
• 17:30
  Speaker 4: I've got to give you the whole backstory absolutely, So
• 17:32
  Speaker 4: does this mean that Navidia is bad?
• 17:35
  Speaker 2: Now?
• 17:35
  Speaker 4: Not necessarily, But it depends on your investment style. And
• 17:39
  Speaker 4: I hate this question when people are like, oh my god,
• 17:42
  Speaker 4: should I buy this? And it's like, well, I can't
• 17:43
  Speaker 4: give you personalized advice. If I could, I would, but
• 17:46
  Speaker 4: I can't, so I won't. It depends on your investment style,
• 17:50
  Speaker 4: the time horizon that you have, so like how long
• 17:52
  Speaker 4: you're planning on investing for. And your tolerance for risk
• 17:55
  Speaker 4: goes back to Disneyland and like, I can't remember all
• 17:57
  Speaker 4: of the rides that are there, but you get my
• 17:59
  Speaker 4: vibe when I'm like, oh, would you go on the teacup?
• 18:01
  Speaker 2: Beck?
• 18:01
  Speaker 4: Right, I would happily go on go on the tea cup?
• 18:04
  Speaker 4: Would you go on the Giant Drop?
• 18:05
  Speaker 2: I don't think. Yeah.
• 18:06
  Speaker 4: So that's what risk is, right, So that's your tolerance
• 18:09
  Speaker 4: to risk. But it's in the share market. So you
• 18:11
  Speaker 4: might look at different shares and go, okay, well a
• 18:14
  Speaker 4: blue chip stock, I'm gonna buy that, no worries. But
• 18:18
  Speaker 4: now with all this additional information about Nvidia, would you
• 18:22
  Speaker 4: purchase that? So the question is not whether you should
• 18:26
  Speaker 4: or shouldn't. It's more around your personal situation and whether
• 18:31
  Speaker 4: you would be comfortable with it? Because remember how he
• 18:33
  Speaker 4: said I love the giant drop. Yeah, So like we're there,
• 18:36
  Speaker 4: the line is short. I go, Beck, do you want
• 18:37
  Speaker 4: to go on it with me? You go, no, absolutely not.
• 18:40
  Speaker 4: I'll wait here, I'll take a picture of you on it,
• 18:43
  Speaker 4: and I go on the ride. So can I tell
• 18:45
  Speaker 4: you whether you should go on the ride or not?
• 18:47
  Speaker 4: Because I like the ride?
• 18:48
  Speaker 2: You go, but I.
• 18:49
  Speaker 4: Don't like the ride V So that's what happens when
• 18:52
  Speaker 4: people ask me, Hey, should I invest in this?
• 18:55
  Speaker 2: How do I answer that?
• 18:56
  Speaker 1: I don't know?
• 18:57
  Speaker 2: If you like rides? Do you know what I mean?
• 18:59
  Speaker 1: Right?
• 18:59
  Speaker 3: Right?
• 18:59
  Speaker 1: Right?
• 19:00
  Speaker 4: You need to work out your own tolerance to risk.
• 19:02
  Speaker 4: And once you do, and you can because I've done
• 19:05
  Speaker 4: episodes on risk tolerance and your investment risk profile, and
• 19:08
  Speaker 4: you can also google free investment risk profile and do
• 19:11
  Speaker 4: one online to work out what you would be able
• 19:14
  Speaker 4: to tolerate. Once you do that, you would get an
• 19:17
  Speaker 4: idea of whether you would want to invest. But I
• 19:21
  Speaker 4: think when it comes to Navidia specifically, they're a massive player.
• 19:26
  Speaker 4: Like in the AI space, they are going to be
• 19:28
  Speaker 4: a massive player, and they don't think with how much
• 19:30
  Speaker 4: market saturation they have they're going anywhere quickly. Their chips
• 19:35
  Speaker 4: are basically in every single major model out there at
• 19:37
  Speaker 4: the moment. Could that change maybe, but it would take
• 19:40
  Speaker 4: a long time and a lot of different companies making
• 19:43
  Speaker 4: a lot of big changes.
• 19:44
  Speaker 2: To change that.
• 19:46
  Speaker 4: They've got scale, they have dominance, and essentially I don't
• 19:50
  Speaker 4: think they're going anywhere anytime. But they are also under
• 19:53
  Speaker 4: so much pressure. Beck Can you imagine all of this
• 19:56
  Speaker 4: gossip coming out about you.
• 19:57
  Speaker 2: I know, if you're Sam, you would be.
• 19:59
  Speaker 4: Feeling the pressure, and essentially politically, economically and from competitors.
• 20:04
  Speaker 2: They are feeling that heat.
• 20:06
  Speaker 4: So if you are investing for the long term and
• 20:09
  Speaker 4: you believe that you want AI to be in your
• 20:13
  Speaker 4: investing portfolio because you believe in the future of AI infrastructure,
• 20:17
  Speaker 4: then this could definitely be an opportunity for you to
• 20:20
  Speaker 4: purchase some shares because they're down eighteen percent, And when
• 20:24
  Speaker 4: we see the share market down by eighteen percent, sometimes
• 20:27
  Speaker 4: we could be.
• 20:27
  Speaker 2: Like, oh, it's on sale. Yes, I love a little discount.
• 20:31
  Speaker 4: Like don't get me wrong, if you're going to go
• 20:33
  Speaker 4: to Disneyland, BIC, are you googling discount code on your tickets? Yeah, exactly,
• 20:38
  Speaker 4: And that's what a drop in the share market means.
• 20:41
  Speaker 4: So it's less I guess about the question of is
• 20:44
  Speaker 4: Navidia a bad guy, and more about whether it fits
• 20:49
  Speaker 4: your goals and your investing aspirations and your timeline, and
• 20:52
  Speaker 4: then how comfortable you are writing out that volatility. And
• 20:55
  Speaker 4: there are just some people who don't want to go
• 20:57
  Speaker 4: on the giant drop fair enough exactly, even if it's
• 21:01
  Speaker 4: something that could be perceived as like a bad purchase
• 21:04
  Speaker 4: or something.
• 21:04
  Speaker 2: It's like, there's no way of telling what the future
• 21:07
  Speaker 2: looks like.
• 21:08
  Speaker 4: So I know it's funny because like, as you know,
• 21:11
  Speaker 4: I get in the comments section on our videos on
• 21:14
  Speaker 4: TikTok and on Instagram, and I'm always replying to people,
• 21:16
  Speaker 4: and someone was like, well, I bought this and my
• 21:19
  Speaker 4: shares are down like ten thousand dollars over the last
• 21:21
  Speaker 4: few months, like essentially saying that it was a bad investment,
• 21:25
  Speaker 4: And I was like, oh, my goodness, Like that is
• 21:28
  Speaker 4: not like, yes, your shares are down over the last
• 21:30
  Speaker 4: few months, but like gazoom oush like you've got blue
• 21:33
  Speaker 4: chip stocks. The entire market is down at the moment,
• 21:37
  Speaker 4: we should be seeing it as on sale as those too.
• 21:41
  Speaker 4: Oh my investment's down and therefore it must be a
• 21:44
  Speaker 4: bad investment. The market is wild, she's dramatic. We need
• 21:49
  Speaker 4: to understand her to be able to deal with her
• 21:52
  Speaker 4: different moods. Essentially, yeah, absolutely, and just be patient with her.
• 21:56
  Speaker 4: So the video is under pressure right now so much
• 22:00
  Speaker 4: so like where's the opportunity now? Like where are investors
• 22:04
  Speaker 4: starting to look instand?
• 22:05
  Speaker 2: I feel like.
• 22:05
  Speaker 4: We're seeing a bit of a shift so like AI.
• 22:10
  Speaker 4: Now I won't say his household. Not everyone understands it fully,
• 22:14
  Speaker 4: but it's not as like ooh ah as it used
• 22:16
  Speaker 4: to be. Sure like now you're like, oh, yeah, I
• 22:18
  Speaker 4: understand the premise of chat GPT, Oh yeah, I understand
• 22:22
  Speaker 4: what deep seek is. But in twenty twenty three and
• 22:25
  Speaker 4: twenty twenty four, the I guess hype was all around
• 22:28
  Speaker 4: AI infrastructure, so like the chips, the servers, like the
• 22:33
  Speaker 4: cloud capacity, basically the building blocks that created AI. We
• 22:37
  Speaker 4: were like so excited about purchasing. But now the market's
• 22:41
  Speaker 4: really asking, well, who's making money using this technology? Like
• 22:46
  Speaker 4: we've built it that people have come. Who are the
• 22:49
  Speaker 4: people that are using it to make a lot of money?
• 22:52
  Speaker 4: Because we're seeing, you know, this system help us individually,
• 22:58
  Speaker 4: but surely they are really big companies that have found
• 23:00
  Speaker 4: ways to use AI to their advantage and are making
• 23:03
  Speaker 4: a lot of money. I would really like to invest
• 23:05
  Speaker 4: in those companies. Yeah, so that I feel like it
• 23:08
  Speaker 4: is quite smart. So who's making the money, So there's
• 23:11
  Speaker 4: more focus, I would say on the company's further down
• 23:15
  Speaker 4: the AI value chain side a thing. Let's call it
• 23:18
  Speaker 4: like the chain you've gone further down, like software players
• 23:21
  Speaker 4: or even industries applying AI in real practical ways. So
• 23:26
  Speaker 4: an example of that might be, you know, you might
• 23:28
  Speaker 4: find and this is my easiest example, like I have
• 23:31
  Speaker 4: a mortgage broking company. At the moment, I'm looking at
• 23:34
  Speaker 4: other mortgage broken companies using AI to help with a
• 23:37
  Speaker 4: lot of the like ADMIN processes, and I'm going, oh,
• 23:41
  Speaker 4: that's smart. Imagine if that was scalable, that could be
• 23:44
  Speaker 4: an investing opportunity here for me, because obviously I'm seeing
• 23:50
  Speaker 4: it individually in my business be really helpful. So let's
• 23:53
  Speaker 4: take a company Palenteer for example. Beck you might not
• 23:57
  Speaker 4: have heard of Palenteer before. They're not buildings, but they
• 24:01
  Speaker 4: are helping businesses and governments, which is important because governments
• 24:05
  Speaker 4: have lots of money. Taylor AI models using their own
• 24:08
  Speaker 4: data so even in this market downturn, their share price
• 24:12
  Speaker 4: is actually up sixteen or so percent this year, and
• 24:16
  Speaker 4: that's on top of the massive get this, three hundred
• 24:19
  Speaker 4: and forty percent gain they had in twenty twenty.
• 24:21
  Speaker 2: Four, three hundred and fourty percent gain.
• 24:23
  Speaker 4: That's a lot of gain. And they're landing some really
• 24:27
  Speaker 4: big deals. So they're landing big defense and government contracts,
• 24:30
  Speaker 4: including get this, the new US immigration deal, which is
• 24:35
  Speaker 4: worth thirty million dollars. So if people are seeing big
• 24:41
  Speaker 4: moves like that being made.
• 24:42
  Speaker 2: I feel like we get our little ears up and
• 24:44
  Speaker 2: we're like, oh, what's going on over there?
• 24:47
  Speaker 4: And they are talking about shifting their focus to the
• 24:49
  Speaker 4: commercial sector too, like they're going to look at healthcare
• 24:52
  Speaker 4: and finance, which is where we could see even more
• 24:55
  Speaker 4: upside because those industries obviously need a lot of help
• 24:59
  Speaker 4: but also very lucrative.
• 25:01
  Speaker 2: Yeah.
• 25:01
  Speaker 4: So I think that this is a really good thing
• 25:05
  Speaker 4: to look into because they're a company that are I
• 25:08
  Speaker 4: guess using AI and now people are looking at this
• 25:12
  Speaker 4: company going, you're not making AI, but you're using AI
• 25:15
  Speaker 4: and you're making.
• 25:15
  Speaker 2: A lot of money. I want to be investing in you,
• 25:17
  Speaker 2: I see.
• 25:18
  Speaker 4: Okay, So instead of just like big flashy AI companies.
• 25:22
  Speaker 4: There's more attention on the ones applying it behind the scene, Yeah,
• 25:26
  Speaker 4: which I think is low key, really smart. But I
• 25:29
  Speaker 4: feel like I have been ranting and I don't even
• 25:31
  Speaker 4: know how we got a Disneyland reference in there. But
• 25:35
  Speaker 4: let's take a really quick break back, and when we
• 25:37
  Speaker 4: come back, I'm going to dive into, after having a
• 25:40
  Speaker 4: little bit of a breather, into a part of the
• 25:42
  Speaker 4: AI world that.
• 25:43
  Speaker 2: Doesn't seem to always get the spotlight.
• 25:45
  Speaker 4: We're talking about the quiet achievers, the ones behind the
• 25:48
  Speaker 4: scenes helping power the future of AI.
• 25:51
  Speaker 2: I would say, there's a spoiler here.
• 25:52
  Speaker 4: The next big thing might not be a really nice, big,
• 25:54
  Speaker 4: shiny app It could actually be hiding in your electricity bill.
• 25:57
  Speaker 4: Oh bet you didn't see that coming. All right, welcome
• 26:04
  Speaker 4: back everyone. So before the break, Victoria dropped a.
• 26:07
  Speaker 2: Bit of a juicy gem. I tried, was it Disneyland?
• 26:11
  Speaker 3: It was?
• 26:12
  Speaker 4: You know what many juicy gems in that case, and
• 26:15
  Speaker 4: one was Disney Like.
• 26:16
  Speaker 2: Disneyland just makes it make sense.
• 26:18
  Speaker 4: Yeah, that makes the fair and art sometimes going to
• 26:20
  Speaker 4: use the most rogue analogies and it really hits.
• 26:23
  Speaker 2: It works.
• 26:24
  Speaker 4: So does that mean I can claim my Disneyland trip
• 26:26
  Speaker 4: that I went on a few years ago on tax
• 26:28
  Speaker 4: I think I didn't, but I'm sure we can talk
• 26:31
  Speaker 4: to my accountant.
• 26:31
  Speaker 2: Yeah, I think so.
• 26:32
  Speaker 4: I think if you say any name of any product
• 26:34
  Speaker 4: you've bought this year on the podcast you claim it, yeah, iPhone, iPhone,
• 26:38
  Speaker 4: I phone, Google, Pixel nine, Pro Excel, that is a
• 26:43
  Speaker 4: text deductable, I will be talking to my accountant exactly.
• 26:47
  Speaker 4: So we were talking about the shift from hype to application.
• 26:50
  Speaker 4: You mentioned that it's not just the headline names investors
• 26:53
  Speaker 4: are watching. No, it's not, it's the behind the scenes guys,
• 26:56
  Speaker 4: possibly behind the scenes people. Okay, And we're seeing a
• 27:00
  Speaker 4: bit of a pivot from I guess backing the builders
• 27:03
  Speaker 4: like Navidia and the cloud giants to looking at who's
• 27:06
  Speaker 4: actually using this tech in a meaningful revenue generating way.
• 27:10
  Speaker 2: So if you're making money, I am interested.
• 27:13
  Speaker 4: And there's this whole other part of AI I would
• 27:17
  Speaker 4: call AI centrals. So we're talking utility companies, we're talking
• 27:23
  Speaker 4: energy providers and infrastructure players, the ones literally keeping the
• 27:28
  Speaker 4: lights on in the data centers powering all of this tech.
• 27:32
  Speaker 4: Some analysts, and you've probably heard whispers of people being like,
• 27:35
  Speaker 4: oh my God, don't use AI because you know, do
• 27:38
  Speaker 4: you know how many trees it costs?
• 27:40
  Speaker 2: You've heard this.
• 27:41
  Speaker 4: So some analysts are essentially saying that electricity demand from
• 27:47
  Speaker 4: data centers, which is where all of the AI is housed,
• 27:50
  Speaker 4: could double by twenty twenty six, which is wild when
• 27:53
  Speaker 4: you think about how many AI models we're running already,
• 27:57
  Speaker 4: Like we're already doing lots. You're saying there's going to
• 27:59
  Speaker 4: be double by twenty twenty six, and like that's next year. Beck,
• 28:02
  Speaker 4: So it's not just about the big, flashy names like
• 28:05
  Speaker 4: Navidia and Microsoft. It's essentially a whole ecosystem that works together.
• 28:09
  Speaker 4: The company's using AI in super practical ways and the
• 28:13
  Speaker 4: ones enabling it in the background. That's where we're starting
• 28:17
  Speaker 4: to see, I would say a little bit more market attention, right, Okay,
• 28:21
  Speaker 4: so here's the million dollar question. Yes, I feel like
• 28:24
  Speaker 4: this whole episode has just been trying to get you
• 28:26
  Speaker 4: to go against everything you say, which is I can't
• 28:28
  Speaker 4: give personal advice and please tell me you want personal
• 28:31
  Speaker 4: advice now, Okay, we'll sit down and I'll switch the
• 28:34
  Speaker 4: micro off. Yes, is this the next dot com bubble?
• 28:37
  Speaker 2: Oh?
• 28:38
  Speaker 4: Yeah, it could be. It absolutely could be. Do you
• 28:40
  Speaker 4: know what, when you say the dot com bubble, I
• 28:42
  Speaker 4: laughed so hard. Have you seen the interview where Jeff Bezos,
• 28:46
  Speaker 4: who does Amazon, He went to Harvard and like pitched
• 28:50
  Speaker 4: his idea for Amazon to all of these like NBA
• 28:53
  Speaker 4: students doing business at Harvard.
• 28:56
  Speaker 2: You'd think they'd be really smart.
• 28:58
  Speaker 4: And one guy said, look, just sell like Amazon worth
• 29:02
  Speaker 4: nothing at that point, because like it's never going to
• 29:05
  Speaker 4: take off, Like you are never going to be bigger
• 29:07
  Speaker 4: than bricks and mortar stores, like the shop down the
• 29:10
  Speaker 4: road already established, already has heaps of customers. You probably
• 29:14
  Speaker 4: should just throw the towel in. And that's coming literally
• 29:17
  Speaker 4: from him pitching to Harvard. How'd Amazon work out?
• 29:21
  Speaker 2: Beck? Unfortunately it's quite big? Is it? Unfortunate for who?
• 29:26
  Speaker 4: I mean a lot of people, but unfortunately not for
• 29:29
  Speaker 4: Jeff Bezos, right like he won. Unfortunately. Imagine being that
• 29:33
  Speaker 4: Harvard student. I know that was the one that was
• 29:34
  Speaker 4: like I told Jeff Bezos to drop Amazon anyway, I
• 29:39
  Speaker 4: thought that was funny. But the AI hype, I guess
• 29:41
  Speaker 4: is a lot like or has a lot of similarities
• 29:46
  Speaker 4: to what we actually saw when the Internet started to
• 29:50
  Speaker 4: become big in the late nineties.
• 29:53
  Speaker 2: I was around in the late nineties.
• 29:55
  Speaker 4: I was only privy to playing the Muppets video game
• 29:58
  Speaker 4: and the Barbie video game on my computer at a
• 30:01
  Speaker 4: designated time that my parents let me.
• 30:03
  Speaker 2: So a lot of the stuff that I've learned.
• 30:05
  Speaker 4: About the dot com bubble is actually through my own research,
• 30:08
  Speaker 4: not experience, and I've done a lot. But when the
• 30:11
  Speaker 4: Internet was the hottest new thing back, investors started essentially
• 30:15
  Speaker 4: throwing money at anything that had a dot com name, right,
• 30:19
  Speaker 4: So like investors were like, oh, you're on the internet,
• 30:22
  Speaker 4: take my money. Literally, companies didn't even need to be
• 30:25
  Speaker 4: profitable or prove themselves, and some of them didn't even
• 30:28
  Speaker 4: have revenue yet, and investors were like, take my money.
• 30:32
  Speaker 4: It's fine, I believe in this. But because the Internet
• 30:35
  Speaker 4: felt like the future, spoiler actually was people didn't want
• 30:39
  Speaker 4: to miss out. They were like, oh, my god, this
• 30:41
  Speaker 4: is going to be the next big thing, and they
• 30:42
  Speaker 4: weren't wrong. But the problem with that is that those
• 30:45
  Speaker 4: businesses didn't have actual business models. So like people weren't
• 30:49
  Speaker 4: wrong when able to identify that, you know, the Internet.
• 30:53
  Speaker 2: Was going to be the next big thing. That's pretty sexy,
• 30:56
  Speaker 2: that's pretty.
• 30:56
  Speaker 4: Exciting, but they did get off track when picking the
• 30:59
  Speaker 4: right companies to invest in. I mean investing in a
• 31:02
  Speaker 4: company with no revenue. It's not for me, sure, but
• 31:05
  Speaker 4: we need to do our research. But most of those
• 31:07
  Speaker 4: businesses didn't actually have business models. They were burning through
• 31:10
  Speaker 4: cash with absolutely no clear plan to turn a profit.
• 31:14
  Speaker 2: They were just like, let's spend lots of money, we
• 31:16
  Speaker 2: have lots of.
• 31:16
  Speaker 4: Investors, yay, And that was like their entire strategy. So
• 31:21
  Speaker 4: when reality finally caught up and interest rates then rose,
• 31:25
  Speaker 4: investors started asking questions. They were like, Hi, we invested
• 31:30
  Speaker 4: in your company, where's the revenue And they were like, Lol,
• 31:33
  Speaker 4: there isn't any And that's when it all collapsed. Ah okay, okay.
• 31:37
  Speaker 4: So this is what the dot com bubble was built on,
• 31:39
  Speaker 4: right belief. It wasn't just built on facts and like
• 31:43
  Speaker 4: looking into okay, well this company sells X and it
• 31:47
  Speaker 4: supplies why and because of this, I think it's a
• 31:49
  Speaker 4: good investment. They were just like, my hopes and dreams
• 31:52
  Speaker 4: are feeling good. I'm going to invest. But when the
• 31:55
  Speaker 4: Nasdaq dropped more than seventy five percent, it took fifteen
• 32:00
  Speaker 4: years to crawl back. Whoa like it did crawl back.
• 32:03
  Speaker 4: That's really important to point out it did eventually crawl back,
• 32:06
  Speaker 4: and that's why we are long term, long domestics exactly, right,
• 32:10
  Speaker 4: But like that's fifteen years.
• 32:11
  Speaker 2: That's crazy.
• 32:13
  Speaker 4: So now fast forward twenty five years, we've got another
• 32:17
  Speaker 4: revolutionary tech which was a mouthful, but that's AI with
• 32:21
  Speaker 4: lots of excitement and some I would say spicy evaluations.
• 32:26
  Speaker 4: So the difference is back that this time it's not
• 32:29
  Speaker 4: really scrappy startups that are just chucking a dot com
• 32:32
  Speaker 4: name and just going, hey, you could invest in.
• 32:34
  Speaker 2: Us with the future.
• 32:35
  Speaker 4: It's actually the biggest most profitable companies already existing in
• 32:39
  Speaker 4: the world.
• 32:39
  Speaker 2: Right.
• 32:40
  Speaker 4: It's Microsoft, it's Alphabet, it's Navidia, and they're dropping hundreds
• 32:45
  Speaker 4: of billions of dollars into AI research and development and infrastructure,
• 32:50
  Speaker 4: like very serious money. Like they are just you know,
• 32:53
  Speaker 4: floating on hopes and dreams, and I mean that's distelling
• 32:57
  Speaker 4: it down, but you know exactly what I mean when
• 32:59
  Speaker 4: I say that.
• 32:59
  Speaker 2: So, yeah, we're seeing some type of correlation.
• 33:03
  Speaker 4: Navidio is down eighteen percent this year, Tesla has been
• 33:06
  Speaker 4: cut in half as what should be. But unlike the
• 33:09
  Speaker 4: dot com days, these companies have real products back, real
• 33:14
  Speaker 4: legitimate products, real customers and real revenue, and you're probably
• 33:19
  Speaker 4: going to go, well, is that really risky? Like still
• 33:22
  Speaker 4: like you're saying that these are real, Like is the
• 33:24
  Speaker 4: risk the same, Well, the risk is not necessarily that
• 33:29
  Speaker 4: it's super risky, but it's that history doesn't repeat itself,
• 33:33
  Speaker 4: but it can sometimes rhyme. A lot of the optimism
• 33:37
  Speaker 4: around AI is still based on hopes and dreams and
• 33:41
  Speaker 4: what it might do, not what it's doing right now. Okay,
• 33:45
  Speaker 4: so like we're still really optimistic about oh my goodness,
• 33:49
  Speaker 4: it could potentially xyz. So if the money doesn't start
• 33:53
  Speaker 4: flowing soon from what's being invested by these big companies
• 33:56
  Speaker 4: into research and development and all of the infrastructure, I
• 33:59
  Speaker 4: think that the market could definitely cool off. And maybe
• 34:03
  Speaker 4: I think the biggest takeaway we can get from the
• 34:06
  Speaker 4: dot com bubble as it's called, is that the Internet
• 34:10
  Speaker 4: did change everything, like just not in the timeframe that
• 34:14
  Speaker 4: everybody expected it to do. Like the right idea, I
• 34:18
  Speaker 4: guess at the wrong time can still cost investors.
• 34:21
  Speaker 2: A lot of money, sure, for sure.
• 34:23
  Speaker 4: So like remember when we were younger and they were like,
• 34:26
  Speaker 4: the future is going to have flying cars? Like yeah, probably,
• 34:29
  Speaker 4: but like what is required to create those flying cars,
• 34:33
  Speaker 4: you know, right right right, I have to really quickly
• 34:35
  Speaker 4: be honest with about sang. I said dot com bubble before,
• 34:39
  Speaker 4: and I didn't know what it meant, and now keeps
• 34:41
  Speaker 4: and I thought I'll be able to figure it out
• 34:42
  Speaker 4: as you talk, and then I couldn't figure it out,
• 34:44
  Speaker 4: and it's far too.
• 34:46
  Speaker 2: Late for I love you. You are literally the best.
• 34:49
  Speaker 4: So the dot com bubble was when the Internet like
• 34:52
  Speaker 4: really started to launch and a whole heap of companies
• 34:56
  Speaker 4: started launching on the Internet, and people got really excited
• 34:59
  Speaker 4: abou about it and started investing a lot of money
• 35:02
  Speaker 4: got into it because they were like, the Internet's the
• 35:04
  Speaker 4: next big thing. And beck, I think you and I
• 35:06
  Speaker 4: can agree that, yeah, the Internet was the next big thing,
• 35:09
  Speaker 4: like it changed everything, But these companies just existing on
• 35:12
  Speaker 4: the Internet didn't necessarily mean that they were the next
• 35:15
  Speaker 4: big thing. Yes, Like if you and I'm going to
• 35:18
  Speaker 4: just steal this down really simply, like if you invested
• 35:21
  Speaker 4: in a fashion company online and you're like, oh my god,
• 35:24
  Speaker 4: next big thing is the Internet, and I love fashion,
• 35:26
  Speaker 4: so I'm going to invest in this fashion company, like
• 35:28
  Speaker 4: that doesn't mean it was a good fashion company, right, Like, yeah,
• 35:31
  Speaker 4: they were on the Internet, and if they'd made use
• 35:35
  Speaker 4: of that opportunity and been one of the first to
• 35:37
  Speaker 4: market that fantastic, they would have been really good, like
• 35:39
  Speaker 4: eBay or Amazon. But lots of companies were jumping up
• 35:43
  Speaker 4: and down about the fact.
• 35:44
  Speaker 2: That they just existed on the Internet and.
• 35:46
  Speaker 4: They didn't have real revenue, they didn't have real profits,
• 35:49
  Speaker 4: they didn't have a lot of product, but they had
• 35:51
  Speaker 4: hopes and dreams.
• 35:51
  Speaker 2: Gotchah okay okay, And that's.
• 35:53
  Speaker 4: What drove a lot of investment during that period of time.
• 35:57
  Speaker 4: But that investment, again was built on hopes and dreams
• 36:00
  Speaker 4: and wishes, and like, wishes isn't money. So for at
• 36:04
  Speaker 4: some point when people were like, hey, I need to
• 36:07
  Speaker 4: pay the bills, I'm looking for this revenue. Now I
• 36:10
  Speaker 4: invested in this thing, like where's the dollars? People started
• 36:14
  Speaker 4: to see that maybe they couldn't back themselves, and therefore
• 36:17
  Speaker 4: it dropped and it crashed, and reality kind of came to.
• 36:22
  Speaker 2: The table unfortunately, as it always does.
• 36:24
  Speaker 4: Literally right, So I reckon, Yes, the Internet did change everything.
• 36:28
  Speaker 4: So I guess when it comes to ai Beck, it's
• 36:31
  Speaker 4: not just all about betting on what we think the
• 36:34
  Speaker 4: next big thing is. I think we can all agree
• 36:36
  Speaker 4: that AI is definitely one of the next big things.
• 36:40
  Speaker 4: It's actually about understanding whether the business model behind the
• 36:43
  Speaker 4: thing you want to invest in behind it is actually
• 36:46
  Speaker 4: going to stack up.
• 36:47
  Speaker 1: Yeah.
• 36:47
  Speaker 4: Okay, So how do we even start, like thinking about
• 36:50
  Speaker 4: investing in tech without getting burned? Good question, because I
• 36:54
  Speaker 4: guess tech is very exciting and it moves very quickly.
• 36:57
  Speaker 4: It's literally changing the way that we live and work,
• 37:00
  Speaker 4: and some of the biggest success stories in history have
• 37:02
  Speaker 4: come out of this sector. So I think that's why
• 37:05
  Speaker 4: people still talk about it so much. I think that
• 37:07
  Speaker 4: if I said name a sector in investing, the first thing,
• 37:10
  Speaker 4: you'd probably say tech sector, like easy, like. I think
• 37:13
  Speaker 4: most people just go to that because that's where most
• 37:16
  Speaker 4: of the returns have come from. But it's also relatively risky.
• 37:20
  Speaker 4: So when we're looking at investing in tech or in
• 37:23
  Speaker 4: AI in particular, I've got a list and I've just
• 37:26
  Speaker 4: written it down. So are you really Yeah. So there's
• 37:29
  Speaker 4: a few things I want you to keep in mind.
• 37:31
  Speaker 4: The first one is hype does not equal profit, So
• 37:35
  Speaker 4: just because you're excited about it doesn't mean they're making money. Yeah,
• 37:38
  Speaker 4: It's like, do you remember when I was ranting on
• 37:39
  Speaker 4: about after pay shares ages ago, people were like, I
• 37:42
  Speaker 4: invested in after pay and it's just going up and
• 37:44
  Speaker 4: up and up, and I was like, they have no revenue.
• 37:46
  Speaker 2: This is going to crash. And then it crashed and
• 37:48
  Speaker 2: I was like, what a surprise, that's crazy. Who have
• 37:51
  Speaker 2: seen that going?
• 37:52
  Speaker 4: But just because a company is trending or dropping buzzwords
• 37:55
  Speaker 4: like quantum ai, cloud infrastructure, that doesn't actually mean it's
• 38:00
  Speaker 4: making money bick. They just have a fancy shiny word.
• 38:04
  Speaker 4: So always check the financials. Is it profitable? Does that
• 38:07
  Speaker 4: have revenue growth? Is it burning cash? Do you know
• 38:10
  Speaker 4: what you can do? You can gain the system.
• 38:11
  Speaker 2: Okay, you can ask chat GPT.
• 38:13
  Speaker 4: If a company is profitable, you can ask chat GPT like,
• 38:18
  Speaker 4: can you please look at the financials and let me
• 38:20
  Speaker 4: know if it's got year on year revenue growth. You
• 38:24
  Speaker 4: don't even have to look at the proper financial report.
• 38:26
  Speaker 4: You can give the financial report to chat GPT and
• 38:28
  Speaker 4: she can explain it to you. I've also decided that
• 38:31
  Speaker 4: chat GPT girl, oh yeah for sure. Yeah, definitely giving
• 38:34
  Speaker 4: female vibes. Yeah, I'm feeling that anyway. The next thing
• 38:38
  Speaker 4: number two on my list follow the value chain that
• 38:42
  Speaker 4: sounds lame, but like hear me out, not every win
• 38:46
  Speaker 4: in AI is going to come from the loudest players. Yes,
• 38:50
  Speaker 4: like Navidia and Microsoft in the spotlight and have lots
• 38:53
  Speaker 4: of money and keep throwing it at that. They're also
• 38:55
  Speaker 4: really good at a press release. So like, when you're
• 38:58
  Speaker 4: really good at something and you have a lot of money,
• 39:00
  Speaker 4: you're going to have the right amount of money to
• 39:02
  Speaker 4: pay pr so that people are talking about you consistently,
• 39:06
  Speaker 4: really nicely. But I want you to start looking at
• 39:09
  Speaker 4: the software companies applying AI in real ways, even the
• 39:13
  Speaker 4: company is powering the infrastructure like utilities or like the
• 39:16
  Speaker 4: chip manufacturers, Like I think that there's probably some very
• 39:20
  Speaker 4: real money there to be made. The third thing I've
• 39:23
  Speaker 4: written down, I don't think you're going to be surprised.
• 39:26
  Speaker 4: Diversification is your bestie. That's so true in every Yeah.
• 39:30
  Speaker 2: Literally, like don't go all in on one stock.
• 39:33
  Speaker 4: Like how many times do I have to jump up
• 39:35
  Speaker 4: and down about how sexy I think ETFs are?
• 39:38
  Speaker 2: Why diversification?
• 39:39
  Speaker 4: How you would never just own one stock in general,
• 39:42
  Speaker 4: So like, if you're going to invest in AI, why
• 39:44
  Speaker 4: are you picking one AI stock if you think it
• 39:47
  Speaker 4: is so important? Let's get a bunch of them. So
• 39:51
  Speaker 4: tech is volatile. We know that it is the biggest
• 39:54
  Speaker 4: loop de loop bride at Disneyland. So if you want
• 39:57
  Speaker 4: exposure to that sector, maybe consider spreading it a across
• 40:00
  Speaker 4: a few different tech companies, or maybe pick an ETF
• 40:04
  Speaker 4: that has those companies in it, or a mix of
• 40:06
  Speaker 4: hardware and then software and then like infrastructure place.
• 40:10
  Speaker 2: Sure, so we're mixing it up.
• 40:11
  Speaker 4: We're making sure that instead of just putting flour in
• 40:14
  Speaker 4: the bowl, we are putting lots of different ingredients like
• 40:17
  Speaker 4: eggs and sugar and a lot of butter because we
• 40:20
  Speaker 4: want to make a cake, baby, Like, I don't want
• 40:22
  Speaker 4: a bowl of flour that's been through the oven. I
• 40:25
  Speaker 4: want a cake.
• 40:26
  Speaker 2: Absolutely.
• 40:27
  Speaker 4: The fourth thing and I only have five, so we're
• 40:29
  Speaker 4: coming to the end of my list. But the fourth
• 40:31
  Speaker 4: thing is I want you to know your strategy. Like
• 40:33
  Speaker 4: I asked before if Beck would go on the Giant
• 40:35
  Speaker 4: drop and she said no, I want you to be
• 40:37
  Speaker 4: that clear on what you would and wouldn't invest in.
• 40:40
  Speaker 4: So AI and tech can be classic high risk, right,
• 40:43
  Speaker 4: high risk, high reward to play if you're in it
• 40:46
  Speaker 4: for the long game and you actually believe in where
• 40:49
  Speaker 4: tech is heading. A little bit of turbulence just comes
• 40:52
  Speaker 4: with the territory, like that's how it works.
• 40:56
  Speaker 2: But if it's.
• 40:57
  Speaker 4: Money that you need in I would say the near future.
• 41:00
  Speaker 4: Maybe if you're like, oh what do I do with
• 41:02
  Speaker 4: my house deposit? Or I've got a wedding coming up?
• 41:04
  Speaker 4: Should I be investing this mass amount of money or
• 41:07
  Speaker 4: maybe even your emergency fund? That is not the place
• 41:10
  Speaker 4: for this, like absolutely not. Make sure that your strategy
• 41:13
  Speaker 4: matches your timeline and your goals and.
• 41:16
  Speaker 2: Your peace of mind. Right.
• 41:18
  Speaker 4: And then the last thing I've written down here is
• 41:21
  Speaker 4: not every good idea makes a good investment, and I
• 41:24
  Speaker 4: think that is really important to remember. Just because it's
• 41:28
  Speaker 4: a good idea doesn't mean it's going to be profitable.
• 41:31
  Speaker 4: Doesn't mean that you should be investing in it. The
• 41:34
  Speaker 4: dot com bubble or the dot com bust didn't happen
• 41:37
  Speaker 4: because the Internet was a bad idea.
• 41:40
  Speaker 2: Was the Internet a bad idea back? I don't think so.
• 41:42
  Speaker 2: I think it's pretty slay great idea.
• 41:45
  Speaker 4: It happened because investors through a lot of money at
• 41:48
  Speaker 4: companies that weren't profitable or proven. AI might absolutely be
• 41:52
  Speaker 4: the future, but it doesn't mean that every single AI
• 41:55
  Speaker 4: stock is a goodbye. Like, just because people are playing
• 41:59
  Speaker 4: in the AI space and they're listed doesn't mean you
• 42:01
  Speaker 4: should be buying them. The lesson here, I think is
• 42:04
  Speaker 4: look for solid business models, not just shiny buzzwords. Okay, okay,
• 42:09
  Speaker 4: they can't just.
• 42:09
  Speaker 2: Talk the talk.
• 42:10
  Speaker 4: They also have to be walking a walk. If you're
• 42:12
  Speaker 4: not making money, I'm just not that interested in you.
• 42:14
  Speaker 4: Yeah enough, like low key rude like in the shed market, beck,
• 42:18
  Speaker 4: yeah we're marrying rich.
• 42:20
  Speaker 2: Oh not just the guy who looks rich?
• 42:22
  Speaker 4: Yeah yeah right, so right, So if someone's listening and
• 42:25
  Speaker 4: thinking like do I need to jump on the AI
• 42:27
  Speaker 4: train for it leaves the station?
• 42:29
  Speaker 2: What do you want them to remember?
• 42:30
  Speaker 4: Literally all of the stuff I just said about Disneyland.
• 42:33
  Speaker 4: But like, you don't need to be in on every
• 42:35
  Speaker 4: single trend to build wealth. Like if you're looking at
• 42:39
  Speaker 4: AI and you're like, oh, this is the future, Like, babe,
• 42:41
  Speaker 4: those shares are still going to increase in the future.
• 42:44
  Speaker 4: If that's the case, yes, you might be getting on
• 42:46
  Speaker 4: at a different station than everybody else.
• 42:48
  Speaker 2: And yes, some other people might make a little bit
• 42:50
  Speaker 2: more money than you.
• 42:52
  Speaker 4: That makes sense because they got on the train really
• 42:55
  Speaker 4: early and they get alonger ride, and that's fine. That
• 42:59
  Speaker 4: doesn't mean you're right, is any less valid, You're still
• 43:01
  Speaker 4: going to the same destination. So I think importantly tech
• 43:05
  Speaker 4: and AI can absolutely be part of your portfolio. It
• 43:09
  Speaker 4: is just so important to make sure it fits your
• 43:11
  Speaker 4: goals and your timeline and what you want to do,
• 43:14
  Speaker 4: and making sure that you're okay with the fact that
• 43:17
  Speaker 4: you're going to have a little bit of that volatility
• 43:20
  Speaker 4: along the way, like it's going to go up and
• 43:22
  Speaker 4: it's going to go down because investing at its crux
• 43:25
  Speaker 4: is a roller coaster and if you don't like roller coasters,
• 43:27
  Speaker 4: don't go to the theme park.
• 43:29
  Speaker 2: Fair fair call.
• 43:31
  Speaker 4: So I think that's actually a perfect thought trap this up.
• 43:34
  Speaker 4: So if you've got a mate who's been texting you
• 43:36
  Speaker 4: screenshots of AI stock charts and see I'm also sending
• 43:40
  Speaker 4: my friends screenshots of stock charts, well you're the problem.
• 43:43
  Speaker 4: I am the problem, and they asking, like, you know,
• 43:45
  Speaker 4: should I buy this? Maybe flick them this episode instead? Oh?
• 43:48
  Speaker 4: Should I send this to myself yourself? Don't get me wrong.
• 43:51
  Speaker 4: As much as I can tell you exactly what you
• 43:53
  Speaker 4: need to be doing, I've been down in the video wormhole,
• 43:57
  Speaker 4: like I go down that rabbit hole on a regular
• 43:59
  Speaker 4: basis and to make ooh what's this?
• 44:00
  Speaker 2: Oh what's that? I want to look?
• 44:02
  Speaker 4: And then I send texts to my also investing friends
• 44:06
  Speaker 4: and I'm like, what's this look like? What are your
• 44:07
  Speaker 4: thoughts on? And they think I'm de Lulu and spend
• 44:10
  Speaker 4: too long in financial reports when you could just stay
• 44:12
  Speaker 4: our ski But that's okay, that's a story for another day.
• 44:15
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• 44:19
  Speaker 4: and I adore talking about investing and giving you as
• 44:22
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• 44:25
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• 44:28
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• 44:31
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• 44:33
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• 44:36
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• 44:39
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• 44:43
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• 44:45
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• 44:47
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• 44:50
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