"I think it's hard to overestimate the potential impact that this technology is going to have," says Mike Brown, President & CEO, Brown Family Wealth Advisors and host of The Money Show on KMOX Radio, "It's been around for a long time, but it's like we're just discovering it." When it comes to investing in Artificial Intelligence, Brown tells us we have to leverage our own brain power to avoid too much risk.
"The more you want to focus on any investment idea, the farther in you zoom the greater the potential rewards, but the greater the risk because you're moving the odds against you." Brown points out, you may already have more skin in the game than you realize, "people need first off to realize that if you own stocks in your portfolio, whether it's in a mutual fund or a managed portfolio or a 401k plan, you're already pretty heavily invested in artificial intelligence just because of the companies that you probably own directly or indirectly."
Speaking on Total Information AM, Brown adds, if you do want focus more of your investments on AI, there are smarter ways than picking individual companies. "If you're just really all in on this and you want it to have some impact in your portfolio. I probably would stick with funds or exchange traded funds, ETF's that have a focus here and I wouldn't go crazy. I wouldn't overload the portfolio in these types of companies."
Bottom line for investing in AI according to Brown: Don't try to pick the individual winners, but do get some exposure to the industry and related industries as well.
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