This is why you should invest CAREFULLY in today's AI mania…
| From the desk of Miles Everson: Happy Wednesday! I hope you’re all having a great day today. For this article, I’m excited to share with you another useful investment analogy. I believe this is something we all have to keep in mind always. |
Ready?
Continue reading below to know more about this “Mania.”
This is why you should invest CAREFULLY in today's AI mania…
Would you want to own a “piece of machine” that traps you inside with a violent, naked man?
In the mid-1800s, Great Britain faced its biggest mania ever: The first steam-powered train launched in 1825.
Within a few years, it made all kinds of headlines.
While people talked about how fast the train was, many were actually scared to try it.
The reason?
The new train seemed to be making people act… odd.
According to reports, folks who would board the train seemed completely normal. However, as soon as it started moving, lunacy ensued…
One man started jumping through the train-car windows, going after other passengers while brandishing a gun. As soon as the train pulled into the next station, he calmed down.
In another instance, a Scottish passenger took off all his clothes and started climbing out the windows.
Not to be outdone, another man combined both feats. He managed to disable all the communications aboard the train before chasing other passengers around while completely naked. He had to be restrained with umbrellas.
Huh, what was happening there?
This phenomenon came to be known as “railway neurosis.” Doctors discovered that fear of railway accidents could induce this type of hysteria among passengers.
… but here’s the thing.
While railway neurosis scared a lot of people away from trains at first, it didn’t last long.
… and according to Professor Joel Litman , Chairman and CEO of Valens Research, a similar situation is happening again today.
The Railroad Mania and The Artificial Intelligence (AI) Mania
Eventually, people’s curiosity about trains won out over their fears. As they realized that trains were generally safe to ride, they started clamoring for rail stocks.
Stocks funding rail lines across Great Britain popped up as early as the 1840s. In 1847 alone, companies spent more than the modern-day equivalent of USD 1 trillion developing new rail lines.
Most of that money came from investors lining up to get a piece of the action.
Fast forward to today…
While the fear and excitement surrounding railroads are long gone, many of them are still in operation. In fact, we’re seeing similar fear today alongside a similar mania.
Only this time, it's in AI.
Like they did with railroads in the 1800s, people are now panicking over what AI means for the world AND for the market.
Sam Altman, the co-founder of OpenAI, which created the ChatGPT tool, is trying to raise trillions of dollars to build all the AI infrastructure needed at the moment.
Most people scoff at such a figure. However, if they think the AI mania is anywhere near as big as railroad mania, such an amount may not be so absurd after all.
In fact, according to Professor Litman, a ton of companies are already using AI. Even more are “claiming” to use the technology, with little to show for it.
It’s tough to know which companies are legitimate… and it’s tougher to know which are still of good value.
That’s why for Professor Litman, it’s critical for folks to invest carefully in today’s AI mania.
If you choose right, you could set yourself up for generational wealth.
If you choose wrong, you could follow a fad-chaser all the way to zero.
Hope you’ve found this week’s insights interesting and helpful.
| EXCITING NEWS AHEAD The world of work has shifted, and there’s no going back. The barriers to entry have never been lower for talented professionals to work independently, and today’s massive external workforce is hardly a pandemic-produced fad. Business owners can only survive in the new work landscape by partnering with this deep talent pool. With decades of experience in both small-business entrepreneurship and executive management at PwC, I truly believe that the future of work is independent. With that, I’m happy to share with you that my book, co-authored with Walter Scott Lamb, is now available on Amazon! Free Birds Revolution: The Future of Work & The Independent Mind This new bestseller is an essential read for both independent professionals and corporate executives. Here, we provide educational and practical guides to unpack the ever-growing workforce and offer you crucial ways to become a client of choice. Click on the link above to order your copy. Let this bestselling book help you future-proof your career and organization in the new world of work. |
Stay tuned for next Wednesday’s The Independent Investor!
Do you know what the biggest threat to the U.S. financial system is?
Learn more about why you should leave some room for the “Old guard” in next week’s article!
Miles Everson
CEO of MBO Partners and former Global Advisory and Consulting CEO at PwC, Everson has worked with many of the world's largest and most prominent organizations, specializing in executive management. He helps companies balance growth, reduce risk, maximize return, and excel in strategic business priorities.
He is a sought-after public speaker and contributor and has been a case study for success from Harvard Business School.
Everson is a Certified Public Accountant, a member of the American Institute of Certified Public Accountants and Minnesota Society of Certified Public Accountants. He graduated from St. Cloud State University with a B.S. in Accounting.
SIGN UP FOR THE NEWSLETTER
The Business Builder Daily