This post was originally shared in my DT Email Newsletter here.
I’ve never felt the full force of a technology obsession until now. Today, it’s everything AI – how it will disrupt jobs, change the way of the future and so on.
For many people, it’s as if AI is the messiah that will solve all our problems.
AI makes us anxious about the future: Am I falling behind? Do younger people understand this better than I do? Will everything I know become useless?
You’ll disagree with me…
But an AI obsession won’t save you.
Look, I’m all for how AI will change the way we live. I learn, pay and use AI in my daily life. Just like how the railway and internet boom brought huge changes to our lives. But I don’t believe we need to feel anxious over it.
During the Broadcasting Boom in the 1920s, commercial radio became a huge hit. It became the dominant home entertainment.
Now, the Radio Corporation of America (RCA) was the monopoly electronics and communication firm in the US for over 50 years. In the early 1920s, it was at the forefront of the booming radio industry, making radio receivers.
At one point, the Radio Corporation of America (RCA) was the hottest stock in the US…
Today, radio is still alive and kicking. Just evolved into a different format.
Think about this. In the 1990s, people were already predicting how the tech boom could change the world: voice recognition softwares, e-commerce shopping, watching videos online and so on.
Yet, it actually took the next two decades to turn all these into a profitable reality. That same pattern is happening with AI. It will take a few decades before many of these “gold rushes” would become a profitable reality.
It’s a foregone conclusion AI is here to stay. We should still learn to use AI. But it should be a tool, not a crutch. And instead of obsessing over AI, I believe the real focus should be to build a life skill that can create passive income for retirement.
When I was younger, I learnt an important lesson that shaped my life. That everyone needed a profitable life skill. For me, that skill was investing. I spent my waking hours studying finance gurus: From Warren Buffett toBenjamin Graham, Howard Marks, Seth Klarman and so on.
I read their books, shareholder letters, and memos to understand how they invest and what makes them different. I learnt how companies make money, what separates a great business from a mediocre one.
And I learnt how to buy them at the right price.
What’s more, learning how to think clearly, learning patience and discipline to make good decisions in the stock market. Technology will keep changing. But the ability to think and invest will never go out of style.
Sometimes, investing can be simple.
Willie Keng, CFA
Founder, Dividend Titan
