Morning Download from Invincible Money

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Good morning investors! Today’s newsletter has a bit more long-form, in-depth content to mix it up a bit. Do you like this or short, quick headlines instead? (please vote below)

Today: What’s the best way to invest in AI? We have a few ideas, along with some from Cathie Wood (ARK Invest) and Chamath (Social Capital CEO).

📰 News

Zuck changes his mind about remote work

Meta's new return-to-office policy is a significant change from the company's previous stance on remote work. In 2020, Meta CEO Mark Zuckerberg said that he wanted to make Meta a "virtual first" company, and that employees could work from home permanently if they wanted to. However, the company's new policy suggests that Zuckerberg has changed his mind about remote work.

There are a few possible reasons for Meta's change of heart. One possibility is that the company is concerned about losing its competitive edge. Many other tech companies, such as Google and Twitter, have already announced plans to let employees work from home permanently. If Meta is seen as being behind the curve on remote work, it could lose out on top talent.

Another possibility is that Meta is concerned about employee morale. A recent survey found that nearly half of remote workers are considering quitting their jobs in the next year. If Meta's employees are unhappy with the company's new remote work policy, it could lead to a decrease in productivity and an increase in turnover.

Meanwhile, Elon recently said remote work was “morally wrong” and that anyone who wanted to work from home should “pretend to work somewhere else.”

Amazon may try mobile again

The company is rumored to have been talking with carriers about launching a $10 per month, or maybe even a free mobile phone service, for Prime subscribers in the U.S.

They’ve had talks with Dish Network, T-Mobile and Verizon. Amazon talked to AT&T, but they’re not considered a contender.

Denial: Amazon said not plans were on the table.

Why? Prime subscriber growth has slowed after Amazon increased it from $119 to $139 in 2022.

At Friday’s close, the market picked a favorite carrier:

1. AT&T [T -3.80%]

2. T-mobile [TMUS -5.56%]

3. Verizon [VZ -3.19%]

4. Dish Network [+16.24%]

What? So why did Dish pop, while the others sank? It’s considered the front runner and has the most to gain.

Apple VR Headset announcement today

The company is expected to announce the launch of their $3,000 VR headset at 1 pm today at their annual Worldwide Developers Conference.

• Apple expects to sell 1 million units in the first year (vs. 200 m iPhones).

• It could kick off a wave of new app development, much like the iPhone did. Startups are watching closely.

• Bloomberg calls it the “most significant product launch event in nearly a decade.”

📈 Stocks

Nvidia still hot (41 out of 49 analysts agree)

Nvidia's stock has tripled in value since the start of the year, making it the best performing stock in the S&P 500 (WSJ). Investors are bullish on Nvidia's graphics processing units (GPUs), which are used to power artificial intelligence (AI) programs.

Analysts say: 41 out of 49 analysts surveyed by FactSet have a buy rating on Nvidia's stock, up from 30 in October. However, some skeptics question the stock's valuation, which is trading at 83 times forward earnings, compared to the S&P 500's multiple of 22.2 times earnings.

Cathie Wood sold some of her position

Why? She believes there are better ways to invest in AI now, like Robotic Process Automation software company UiPath (Motley Fool), Twilio [TWLO] (genomics), Exact Sciences [EXAS], and Teledoc [TDOC]. (Deep dive here.)

Cathie currently still owns Nvidia it in several of her funds and has since they opened and said Nvidia still has a lot of upside.

Woods still loves Tesla

Telsa is still her largest position because autonomous taxis will deliver $8-10 Trillion in revenue by 2030, which is half the U.S. economy. She forecast Teslas’s stock to 10x by 2027. Wow. That’s quite a prediction.

Her interview on Bloomberg is worth a watch (esp. first 5 minutes) for ideas about investing in AI.

** Not investment advice. She’s just one view and her funds have had a lot of ups and downs.

Chamath’s Take

Meanwhile, Chamath Palihapitiya wondered on the “All-in Podcast” if Nvidia will create a monopoly as they try to vertically integrate with their new CPU-GPU chip.

Watch the clip below:

🔐 Crypto

Fun read

The Kingdom of Bhutan has been quietly mining Bitcoin for years.

Stripe still into crypto

Stripe was one of the first companies to offer bitcoin payments, but it discontinued the product due to lack of demand.

The company has since built out crypto payouts and fiat-to-crypto on-ramps, which Collison, Stripe’s President, says work better than fiat payments in some cases, like cross-border payments where payment rails are lacking. However, Stripe's crypto team is relatively small, with just about 20 employees.

💵 Personal Finance

How to invest in the AI revolution

Here are a few options (from most risky to least):

• Invest in individual stocks. This is a more risky option, but it can also be more rewarding. When investing in individual stocks, you are essentially betting on the future success of a particular company.
  

• Invest in mutual funds or ETFs. This is a less risky option than investing in individual stocks. Mutual funds and ETFs are baskets of stocks that are managed by professional investors. This means that you don't have to worry about picking individual stocks, and you can spread your risk across a number of companies.
  

• Invest in technology-focused exchange-traded funds (ETFs). An ETF is a type of mutual fund that trades on a stock exchange. ETFs are a good way to invest in a particular sector of the market, such as technology. This is because ETFs track a specific index, such as the NASDAQ 100, which includes the 100 largest non-financial companies listed on the NASDAQ stock exchange.

When investing in technology, it is important to do your research and to understand the risks involved. Technology is a volatile sector, and prices can fluctuate wildly. However, if you are willing to take on some risk, investing in technology can be a rewarding and many believe this sector will continue to drive returns, like it has this year.

These ETFs invest in a variety of technology companies, including software, hardware, and telecommunications companies. They are a good way to get exposure to the technology sector without having to pick individual stocks.

When choosing a technology ETF, it is important to consider your investment goals and risk tolerance. ARKK is a more aggressive ETF that invests in disruptive innovation companies. VGT is a more conservative ETF that invests in large-cap technology companies. IYW and XLK are both mid-cap technology ETFs.

It is also important to consider the fees associated with the ETF. ARKK has an expense ratio of 0.75%, while VGT, IYW, and XLK all have expense ratios of 0.15%. The expense ratio is the percentage of your investment that the ETF company charges each year.

💰 Be a Better Investor

Wood's investment philosophy is based on the idea that the world is undergoing a period of rapid technological change, and that the companies that are at the forefront of this change will be the most successful in the long run. She invests in companies that are developing new technologies in areas such as artificial intelligence, gene sequencing, and blockchain.

Wood's investment philosophy is not without risk. Disruptive innovation can be unpredictable, and there is no guarantee that the companies that Wood invests in will be successful and we’ve seen her funds values swing both ways the past couple of years. However, Wood believes that the potential rewards of investing in disruptive innovation outweigh the risks.

🧠 Get Smarter

This is a good reminder be selective about people you spend time with because their habits will become your habits, for better or worse.

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.