Markets continue to trend higher, with seven of our Disruption Investor holdings hitting new all-time highs last week.
How we invest: Buy great businesses profiting from megatrends. Go here to become a Disruption Investor member.
Let’s get after it…
The cyberattack knocked out more than 100 services and sent UnitedHealth Group’s (UNH) stock tumbling 10%:
An easy way to keep the odds on your side is by investing in trends that won’t change. We call them “megatrends.”
Cyber is as close to a guaranteed megatrend as you’ll ever get.
Robust cybersecurity used to be a “nice to have.” Now, you can’t run a business without it. I can’t imagine a future in which CEOs say, “Yeah, cybersecurity isn’t THAT important…”
Companies will lay off employees and shut down offices before they even consider cutting security spending.
This all but guarantees a never-ending stream of cash will flow into cybersecurity firms’ coffers.
If you own cyber stocks or are thinking of buying them, know this: The individual company you choose to buy matters a great deal.
Case in point: The First Trust NASDAQ Cybersecurity ETF (CIBR) is up about 10% this year. The one cyber stock we own inside Disruption Investor is up 30%.
I’m reading Neal Stephenson’s The Diamond Age.
It introduces us to the “Young Lady’s Illustrated Primer,” an interactive book for kids. Its magic is that it tailors lessons to each kids’ individual needs. It’s basically a personalized one-on-one tutor.
Artificial intelligence (AI) is turning the “Primer” from sci-fi into sci-fact.
I recently stumbled upon Synthesis, a new interactive AI learning tool. It looks INCREDIBLE! Every kid I’ve seen using it raves about how cool and fun it is.
Here’s what Synthesis looks like. Go check the videos out for yourself. I can’t wait to try it out with my kids.
AI tools like Synthesis can know an individual child’s strengths and weaknesses. They’ll be able to tailor lessons to each kid’s needs. “Stephen struggles with math, is a visual learner, and is sharpest in the morning. Design tomorrow’s lesson with these inputs.”
Everyone can agree education is extremely important. Yet, it’s barely changed in 100 years.
We still stuff 20+ kids into a classroom and expect them to all learn at the same rate.
In 1984, MIT professor Benjamin Bloom showed that with just a few weeks of individual lessons, a group of average students outperformed 98% of others in the class.
It’s never been possible to give every kid a teacher.
Robo-tutors are like hiring a personal coach for your kids, but for a fraction of the cost. What a time to be a parent!
AI is unlike any other disruption I’ve invested in. The profits are nice… but even greater gains may come from using AI.
I’d trade my Nvidia (NVDA) profits for my daughter becoming a straight-A student.
Time to accelerate…
We’re told the world is getting warmer at an alarming pace and will lead to an ecological disaster that could wipe out humanity.
But did you know extreme cold kills 9X more people each year than extreme heat?
The Economist did an incredible study into deaths caused by high energy prices in Europe in 2022. Natural gas prices doubled as Russia cut off Europe’s gas supplies.
My energy bills were scandalously high. Some folks simply couldn’t afford to heat their homes.
The problem with being cold is that it raises your blood pressure. And high blood pressure is the #1 killer worldwide, accounting for around 11 million deaths each year.
The Economist estimated this resulted in 68,000 excess deaths in the winter of 2022. This was a higher death count than COVID during this period.
This is why I’m pumped for the nuclear renaissance.
Energy is life. Without it, there’s only darkness, cold, and death.
So it makes sense to adopt the cleanest, safest, and most abundant energy source known to man… nuclear.
If you’re looking to speculate on the atomic revival, consider the “Exxon Mobil” of uranium, Cameco (CCJ). I first recommended it to RiskHedge readers in 2018. It’s up over 350% since then, and it could go much higher.
Since 1990, the number of Americans dying from air pollution has plunged 70%:
Let’s thank innovations like nuclear power… solar panels… electric vehicles… and carbon capture for cleansing our air.
I’ll see you Wednesday.
Stephen McBride
Chief Analyst, RiskHedge