We all spend a lot of time trying to understand the latest opportunities everyone else seems to be chasing. To a large extent, we need to do that. The world is constantly evolving, and investors need to keep up.
At the same time, there is clearly a strong appetite for timeless frameworks and enduring principles that can be relied upon in every market environment.
People want more than stock tips. They want help developing and applying a consistent investment approach.
My father gave me an early and lasting appreciation for markets. The library trips to photocopy Value Line, the annual reports stacked on my desk, the dividend discount model explained over the kitchen table—all of it added up.
I've been trying to do something similar for my own sons, in my own way. But the world moves faster now. And it has changed enough over the past year that I felt some items needed to be added to the list.
The timing feels right for another reason. My two sons in college—along with what seems like every one of their friends—independently went out and bought SpaceX right after the IPO. I did not suggest it. They just did it.
Elon Musk deserves a Father’s Day shout out if only because he has fourteen kids of his own. He deserves extra credit for all the excitement he has brought to stocks and investing.
Elon has also reignited enthusiasm for technological and economic progress in general.
We are at a moment when anti-capitalist politicians—in New York and elsewhere—are gaining real traction. They are succeeding by amplifying the same anti-capitalist attitudes that have unfortunately become deeply embedded across the American education system.
Elon’s grand ambitions for humanity represent a stark alternative to the dark rhetoric and pessimism of these suddenly influential politicians, who are winning elections by putting a cool spin on failed nineteenth century socialist concepts.
That being said, as Trish and I have discussed, the SpaceX valuation is quite intimidating. It requires enormous growth from current levels for it to be at all plausible. That growth is possible but far from guaranteed.
So, on the plus side, SpaceX is sparking the interest and stimulating the imagination of a whole new generation of investors. On the other hand, one hopes it does not leave these new investors disillusioned if the business is unable to deliver on all the hype and the shares perform poorly.
Whether or not SpaceX successfully grows into its multi-trillion dollar valuation—and how much of Elon’s vision of the future actually materializes—will be fascinating to watch.
But even if we are not vacationing on Mars by 2031, it is clear that AI-driven technological advancement is going to change the world to an enormous, potentially even shocking, degree.
This brings me to my updated list. Specifically, I wanted to put more emphasis on technology—and AI in particular.
AI is not just another investment theme. It is likely to be the most consequential technological shift of our lifetimes. And if my sons (or anyone else) are going to be serious about investing, they need to understand it deeply.
With that in mind, here are three more things….
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