The Robots Are Coming – Will These Investments Create Millionaires?

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We will see a billion robots in all shapesβ€”robots shaped like humans, robots shaped like animals, and robots shaped like novel creatures with specific skills. They will do everything for us in the real world, thereby allowing programming reality. It’s about digitizing the real world, and the boundaries between the real world and cyberspace will begin to blur.

Of course, this will be very beneficial for all measures of productivity. Scaling intelligence with generative AI and scaling physical labor with robots will make us hyperproductive. The effect is highly deflationary, so the price of goods will drop significantly. The economic forces are just too strong for it not to have this deflationary pressure.

Yes, there is an inflationary force called debasement, i.e., printing more monetary units by central banks, but let’s not go that way. It doesn’t change the main thesis of this article.

The question is how can we benefit from these massive changes? How can YOU position YOURSELF on the right side of change?

First, recognize that you shouldn’t rely too much on your physical or mental productivity. It’s a rat race you cannot win. Machines’ productivity is unbeatable whether you’re producing content, ideas, research, or physical goods.

Your labor’s market value will go to zero at an exponential rate.

Second, this means you need to invest as much as you possibly can.

Stocks are a good option but many companies will suffer significantly. In fact, most companies will be disrupted so choosing something like an S&P 500 will yield unsatisfactory returns.

I’m not an investment advisor, but here are my views on which companies will thrive in the decade to come. Investing in a basket of these companies might be a much better idea than buying an index fundβ€”at least for me.

Investment 1

Tesla is about to launch the biggest AI application ever seen: self-driving cars. The logistics and transportation sector is one of the biggest industries in the world and it’ll be completely disrupted. Costs will fall significantly, most transportation companies will go bankrupt, and a few winners will take it all. Tesla will be one of the winners.

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Also, Tesla is currently working on humanoid bots. They were the first major company to announce the robot-first strategy. Their plan to produce billions of humanoid robots seems doable as they have already proven their manufacturing prowess by printing out millions of electric vehicles. Humanoid robots will ultimately be cheaper and easier to produce than cars from a pure manufacturing point of view.

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That’s why I love investing in Tesla. They have two “call options” for two of the biggest AI industries on the planet: self-driving cars and humanoid robots. The value creation of these two applications is insane, and chances are that Tesla can easily monetize these applications with high profit margins, given the significant moat they have and the dollar savings they generate for customers.

Investment 2

Second, there is NVIDIA, which is very focused on becoming an AI infrastructure company. But they’re doing more than other chip manufacturers like Intel. They create software infrastructures such as CUDA and their metaverse infrastructure applications for virtualizing anything from training robots to designing factories. The great thing about NVIDIA is that there’s no end to the computational hunger for AI training.

Computational demand increases polynomially to the model and training data sizes.

But both are currently exploding and there’s no convergence in sight:

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Investment 3

Third, there’s MSTR or IBIT with the simple investment thesis that all this abundance of goods, with exponentially expanding productivity, will make scarce goods more desirable at the same rate. If you can generate 10x the output, the value of a scarce monetary good should at least be 10x greater in relation. Money is a unit of account, i.e., it measures the value of everything that can be bought. So the value of all money should be the same as the value of all saleable goods.

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