Hello, Reader.
In the spirit of Thanksgiving, I’d like to give you something more long-lasting than leftovers…
A list of five of my most important investing tips…
All of which can help you become a self-determined investor. That means taking control of your own investment path – being neither seduced by Wall Street’s hype, nor paralyzed by Main Street’s despair.
A self-determined investor is one who honestly evaluates both risk and reward, and then sets a long-term course toward wealth creation.
Admittedly, artificial intelligence complicates this journey because it introduces new and frightening risks.
But a complicated journey is not an impossible one. If we keep our eyes on the prize, we can try to hitch our financial future to the engines of progress, rather than being run over by them.
So, in today’s Smart Money, I’ll share the five tactics that every self-determined investor needs to embrace and apply.
Then, I’ll show you how to use those tips to find the best stocks within AI boom.
The Self-Determined Investor’s Credo
1. Own Businesses, Not “Tickers”
The Wall Street machine reduces every company to a flickering ticker, a number in green or red. But successful investors look past the flashing lights and ask a simple question: “What is this business, really?”
- Does it sell something the world truly needs, not just something it happens to hype?
- Can it expand profit margins during good times and defend them during bad times, or is it a sandwich awaiting the tide?
- Will it still be relevant in five years – or better yet, in 20?
2. Respect Both Promise and Peril
The promising aspect of AI will create new industries, unlock efficiencies, and drive innovation at a scale reminiscent of electrification or the internet. But AI’s perilous power will hollow out certain jobs, commoditize certain skills, and create volatility in markets unprepared for the disruption.
The prudent investor must acknowledge both sides of AI’s split personality, and then craft their investment strategy accordingly. The intelligent course is neither blind enthusiasm, nor blanket rejection. It is a balance.
3. Think in Years, Not Days
Wall Street obsesses about quarter-over-quarter results, while hedge fund algorithms trade in milliseconds. But the self-determined investor looks past the noise and insists on a longer timeframe.
Wealth is not built in days or weeks. It is built in years, even decades. Investors who extend their time-horizon gain an advantage over the herd.
4. Diversify Without Diluting
Strategic, personalized diversification is also the domain of the self-determined investor. But diversification means more than scattering chips across the board. It means building a portfolio with intention: strong businesses across sectors and resilient assets alongside growth.
In an AI-driven age, diversification might mean balancing high-growth innovators with stalwarts in energy, infrastructure, or healthcare.
5. Refuse the Seduction of Fads
Every age of innovation spawns hype that fuels a boom… and then the inevitable bust.
The Gilded Age featured a “railroad mania” that produced dozens of major bankruptcies. The dot-com boom vaulted profitless websites to multibillion-dollar valuations, only to see them crash to Earth during the bust.
Undoubtedly, the AI Boom will create its own version of infamous failures like Pets.com and Global Crossing.
You need to be informed about which types of companies will thrive.
So, I propose the following blueprint for how to view every prospective investment through the “lens of AI”…
How to Apply These Tips in the AI Age
Self-determined investors can, and should, hunt for opportunity in each of these four AI categories…
First are the AI “Builders,” companies that are creating the software and hardware architectures that enable AI technologies to operate and scale.
Then, AI “Enablers,” companies that support AI’s explosive growth from behind the scenes. They supply the physical materials, energy, real estate, and/or infrastructure required to build and operate AI systems.
Next come AI “Appliers,” companies that are quietly adopting AI technologies to boost efficiency, productivity, and profitability. They may not scream “technology,” but they could profit enormously as they deploy AI technologies throughout their operations.
Finally,there are AI “Survivors,” companies that produce goods and services that AI cannot replicate or replace, operating in major industries like agriculture, energy, mining, hospitality and travel, and more.
By using these categories as a guide, you’ll find that the range of compelling investment opportunities extends far beyond the technology sector – and leads to a more balanced and resilient portfolio.
That is why my Fry’s Investment Report portfolio holds stocks from each of these categories. They all have strong fundamentals, attractive prices, and solid growth potential. And I want you to have access to them.
As a Fry’s Investment Report member, you will receive access to my latest recommendations, which include a range of diverse and under-the-radar finds. You will also receive my latest research, updates, and alerts, where I keep you informed of any major market moves and timely opportunities.
To be a self-determined investor is a challenging task… but it need not be a daunting one.
Click here to join me at Fry’s Investment Report today.
Regards,
Eric Fry
