If You Want to Make Money in the Stock Market, Follow the Billionaires

The world is changing rapidly, and the shift to artificial intelligence (AI) and machine learning (ML) is transforming the way businesses operate. The top 10 richest individuals in the world, including Google’s Larry and Sergey, Amazon’s Jeff, Meta’s Mark, Tesla’s Elon, and Microsoft’s Bill and Steve, have made their fortunes by selling compute power. They are now investing heavily in GPUs, particularly Nvidia’s H100 chips, to advance their AI capabilities.

The Law of Accelerating Returns

As Ray Kurzweil notes in his book “The Singularity Is Near,” we are approaching a point where the rate of technological progress is accelerating exponentially, leading to an explosion of innovation and growth. Kurzweil’s Law of Accelerating Returns states that the rate of change in a wide range of fields, including technology, is accelerating exponentially. This means that the rate of progress in AI and ML is not only increasing, but the rate of increase is itself increasing.

The GPU Ecosystem

The GPU ecosystem is a key example of this acceleration in progress. The top tech giants are investing heavily in GPUs to advance their AI capabilities, driving a virtuous cycle of innovation. The development of more powerful GPUs enables the creation of more sophisticated AI models, which in turn drives demand for even more powerful GPUs. This has significant implications for businesses and investors, as it means that the opportunities for growth and innovation are expanding rapidly.

The Democratization of Compute

The democratization of compute is the next big thing in the tech industry. With the advent of cloud computing and GPUs, businesses of all sizes will have access to the compute power they need to develop and run AI models. This will level the playing field and create new opportunities for companies to innovate and grow.

The Six Epochs of Evolution

Kurzweil identifies six epochs of evolution, each representing a major paradigm shift in the development of technology. We are currently in the fifth epoch, which is characterized by the emergence of intelligent machines. The sixth epoch, which is rapidly approaching, will be marked by the merger of human and machine intelligence. This has significant implications for businesses and investors, as it means that the boundaries between humans and machines are becoming increasingly blurred.

My Top 20 Stocks

In light of these trends, I have narrowed down my portfolio to my top 20 stocks, which include companies like Nvidia, Google, Amazon, Meta, and Microsoft. These companies are at the forefront of the AI and ML revolution and are well-positioned to take advantage of the opportunities presented by the accelerating rate of technological progress.

How to Get Started

If you want to get started with investing in the stock market, I recommend signing up for my Platinum level service. (www.BestOfUsInvestors.com)This will give you access to my weekly newsletter, which includes my top 20 stocks, my portfolio management strategy, and a summary of the articles I have written on the topic of AI and ML. You will also get access to my cheat sheet, which includes the 52-week high and low of each stock, as well as the support level.

Conclusion

The world is changing rapidly, and the shift to AI and ML is transforming the way businesses operate. By understanding the Law of Accelerating Returns and the six epochs of evolution, investors can position themselves to take advantage of the opportunities presented by the AI and ML revolution. I believe that the GPU ecosystem will be a key driver of this revolution, and I recommend investing in companies like Nvidia, Google, Amazon, Meta, and Microsoft.