Ask Doc Most folks have the wrong idea about technology...
You see, when the idea of tech stocks comes up, many individual investors think the only way to make real money is to find some little-known startup with gee-whiz technology. They think they can buy shares for pennies and ride them to eye-popping gains.
Now, I won't say that it's impossible. It's true – early investors in Internet megabrand Alphabet (GOOGL), computer and consumer-product maker Apple (AAPL), and high-tech medical-device maker Intuitive Surgical (ISRG) picked the kinds of winners that you can retire on...
In my own investing life, I've enjoyed that hit-the-lottery feeling speculating on biotech firms, including Amgen (AMGN) and a small private company that was sold to pharmaceutical giant Roche (RHHBY).
Today, you can find investment newsletters touting all sorts of exciting growth stocks with new technology – things like 3D printing, aerial drones, social networks, and cancer cures. It feels exciting buying these stocks, like you're in on a secret most people don't know. And some of these companies may turn into successful investments.
But many won't...
That's the problem. The odds of an individual investor picking the right stock and the right trend are astronomical. For every Apple or Amazon, scores of other promising tech stocks die quiet deaths. In some cases, the technology itself never gets past the science-fiction phase. Even when a company has a technology that works, so much can go wrong as it tries to build a business around it.
That's why I've learned the value of investing in the inevitable... You can make great safe, long-term gains by putting your investment capital in companies and technologies that are so relied upon, so pervasive, that their use is almost unavoidable.
It's also why I've been skeptical of investing in artificial intelligence ("AI"). Like we saw with the dot-com bubble, plenty of companies won't lead to profits.
That's why, this past Wednesday, I sat down with Wall Street legend Marc Chaikin. During our 2023 AI Race event, Marc and I...
- Cut through the AI hype to help you find the real opportunities to position yourself to grow your wealth...
- Revealed what is probably the most important story for you and your money today – how AI will reshape the investing landscape for everyday Americans in 2023...
- And detailed the one decision you need to make with your money, even if you don't realize it...
We also brought out a special mystery guest – a Harvard alum and the CEO of a well-known investment-research company – to discuss the latest groundbreaking AI application that could change your retirement outlook starting immediately...
If you missed the event, click here to catch up.
Now, let's get into some of the things you've had on your minds this week. As always, keep sending your comments, questions, and topic suggestions to [email protected]. We read every e-mail.
Q: Some years back Doc wrote an article about having an end-of-life conversation with family (things to discuss to prepare). Could you reprint that article, I thought I downloaded it, but I can't seem to find it. – E.W.
A: End-of-life preparation is an essential step to take, but a difficult one. We have two issues covering this topic:
Six Questions You Must Discuss With Your Family
The First Step to Preparing for This Worst-Case Scenario
Q: In your recent article about being prepared for summer blackouts, in the communications section, you neglected to mention amateur radio. Most neighborhoods have a "ham" living somewhere nearby, and those operators often have stations in their home or ready for deployment. Many also routinely practice operation under emergency conditions, using battery or solar power. It's possible to get "I need help" messages to the local Emergency Operations Center or "I'm OK" assurances across the nation to friends and family, even with cell towers and the Internet down in your area. To find amateur radio operators in your area, contact a local ham radio club, which you can find by searching the American Radio Relay League at arrl.org. But do so in advance! – M.B.
A: We're used to picking up our phone and making a phone call without any trouble. But in an emergency, there's a chance you can't. On September 11, 2001, phone lines across the Northeastern U.S. were clogged as the telecommunications grid was overwhelmed with people trying to call each other in the aftermath of the terrorist attacks.
In recent years, folks in California have seen phone outages during wildfires. We've seen stories of people who couldn't make phone calls for days.
So thanks for the tip, M.B. Here in Maryland, we found 47 radio clubs nearby. And the American Radio Relay League lists more than 2,800 across the U.S. Having a way to communicate when phone lines are down gives you a chance to let your family know you're OK or, as you pointed out, ask for help when you're in danger.
What We're Reading...
- Did you miss it? It's time to embrace the unpredictable future of AI.
- Something different: Hearing aids may reduce your dementia risk.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
July 21, 2023