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Robotics and Artificial Intelligence - Investment Theme Idea Sharing

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I have just recently suggested two long term fund ideas which could generate and create wealth for anyone with younger children / grandchildren. 

 

The two themes are Robotics and Artificial Intelligence. Pictet offer a Robotics fund and several fund management companies now offer Artificial Intelligence (AI) funds. I feel these two areas could see some enormous growth in the years to come so I would encourage at least holding for minimum 5-10 years but possibly 20-40 years. This could see a fantastic opportunity for long term wealth creation.

 

If you look at the performance of biotech funds which was extremely popular over the past 5 years or so and look at the returns generated then you already have people investing in biotech who could easily add into such funds as well as some of them switching to robotic and AI funds. 

 

Those who know me in relation to the IG Community will now I am an advocate of Blockchain. I can see Blockchain as a path to Artificial Intelligence. I say this as smart contract platforms are being designed to run at graduated stages of increasing automation, autonomy and complexity. 

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I was inspired by @Caseynotes Uranium thread to add to this thread which I started back in December 2017 so around one year and three months ago.

I am taking my trading hat off and putting my investment hat on. I am an investor first and trader second. I have been an investor far longer than a trader. 

I have been investing in Robotics, Automation and Artificial Intelligence for over a couple of years now when the investment funds first came on the scene. I have experienced positive total returns and annualised returns in this area to date. I am still invested and am investing in funds every month using a 'Pound Cost Averaging' strategy with lump sum investments only on large corrections and falls as and when they arise but otherwise no lump sum investing. Just regular monthly amounts. 

I want to share some of the investments that I personally have invested in below. I want to demonstrate that I am not just merely all words (though I can write lots!)😂 but I am happy to back it up with real life examples within my own personal investment portfolio which I am not obliged to share but will to demonstrate that it is really not difficult to share real investments and real trades with others on this IG Community. 

The one thing to note is that the performance differs but they are all in the positive territory. Of course this depends on when you actually invested but bearing in mind this is still not in most people investment portfolios then imagine when it is! Imagine when institutional investors and retail investors increase their exposure and allocation to this area within their investment portfolios? I think over a longer term horizon this area is going to deliver some very positive returns indeed. 

I am already seeing a lot of companies embrace and implement AI into their organisations. Robotics is starting to appear in the health sector, engineering sector and manufacturing sector. It is happening now. Japan is a big leader in this area. Automation is being implemented in office environments in the UK. I am seeing it now. 

There are some others that some of you may wish to look at or consider as below:

This delivered a 37% return last year. Not many investments can boast that level of aggressive returns.

There are many other funds and ETF's in this area on other broker platforms.  I am not suggesting that any of you invest in these or in fact invest in this particular theme. It is one for which I personally have a strong conviction based on my reading, research, acquiring of knowledge and experience. Should you be interested then you must conduct your own research and make your own informed decision. No doubt there will be some of you who do not think these are good investments and that is fine. I am sure there are investments that have returns more over the same period. I am investing in this theme for the long term and have a 10 - 20 year time horizon but that is me personally. I do not know or cannot guarantee that these funds will offer excellent returns going forwards but that is the risk involved in investing. My research has led me to a strong conviction in this theme but it may not for others and that is fine. What I have done is backed up my personal investments with some real life returns which are positive which go to supporting my conviction.

Could the returns go higher in the future? Of course they could but I do not know for sure they will but this is where the level of research and acquiring of knowledge is essential. Add real life examples around the world and then one begins to see the potential that this area has in terms of investment returns. 

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For those that know me, I put my money where my mouth is.  🤑

I invest in investment funds in relation to robotics, automation and artificial intelligence and the returns have been very good even after the recent correction.

This is one example of where I have tried to get in as early as possible on this long term trend which I think will become part of the younger generation investors' portfolios. It will be like how Biotech funds were a few years back or healthcare funds have been recently. 

I wanted to share some news released this week which I think is phenomenal.

SAS announces $1 Billion investment in Artificial Intelligence (AI)

https://www.prnewswire.com/news-releases/sas-announces-1-billion-investment-in-artificial-intelligence-ai-300813597.html

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I have just noticed this ETF available on IG's platform.

613281354_LGROBOGlobalRoboticsandAutomationUCITSETF_20190320_07_16.png.9a00da873801568905d9c1dd0afa35a6.png

As you can see the price performance was excellent from 2016 to 2018. 

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AI THAT SEES LIKE HUMANS DO MAY BE THE FUTURE OF AUTOMATED SEARCH & RESCUE ROBOTS

https://www.firstpost.com/tech/science/ai-that-sees-like-humans-do-may-be-the-future-of-automated-search-rescue-robots-6653431.html

Potential Investment Idea:

There has been a recent drop / pullback / correction in this niche market. Once this drop has played out then there may be an attractive entry point for those who have not got any allocation in their investment portfolios in relation to this.

Also for those who are already invested there may be an opportune moment to consider adding or topping up your investments in this area.

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Those who invested in Robotics, Automation and Artificial Intelligence several years ago will be sitting on very healthy profits and gains. There has been a correction which has been needed and was expected. Once this is completed the next wave (leg up should commence) as more and more people and investors realise the potential returns and performance of this particular niche sector.

I just looked at the ETF's for this sector and compared them to investments trusts / funds and it seems that certain funds who have a fund manager that has stock picked rather wisely and allocated the funds capital efficiently have outperformed ETF's. Not all but to investors should look at the performance of say Smith and Williamson's fund against a typical ETF in this sector to see the point I am making.

Below is an article which some of you may find of interest:

 COMPETITIVE EDGE FROM INVESTING IN AI

https://www.businessleader.co.uk/competitive-edge-from-investing-in-ai/66131/

 

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Just look at the gains from this ETF which is available to trade on IG's platform. 

373848709_FirstTrustNasdaqArtificialIntelligenceandRoboticsETF_20190617_19_43.png.f5aa60182a1c2182d4b3d2d16d3202c5.png

Now there are some funds and investment trusts in this area which have performed better than ETF's simply because of the stock picking skills of the fund / trust manager. Also how much capital they allocated to specific companies and their general portfolio allocation model. Their entry and exit prices play a part as their decision making can be critical to the level of returns they generate for their investors. 

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Automation is an important ingredient when it comes to future economic growth and the progress of emerging and developed economies. Frontier markets are being used to 'test beds' to develop and test automation to apply to most advanced economies. Both markets benefit. 

There are downsides which include the use of robotics and AI to automate many tasks currently performed by workers leading to loss of jobs as a result. This is why countries will need to ensure their workforce is equipped with the new skills this revolution requires. The positives outweigh the negatives and with automation it will boost economic growth, create new jobs and ultimately in my view improve living standards. Many workers will see their jobs change.

From an investment perspective their are compelling arguments as to why this niche market is ripe for serious growth in the years to come. 

One of the funds that I have invested in called Smith and Williamson Artificial Intelligence has shown some stellar returns already since inception. I think there is more to come as far too many still do not know of their existence and still not have any allocation to this area in their investment portfolios.

The link below may offer some of you more insight. 

https://smithandwilliamson.com/en/services/investment-management-funds/artificial-intelligence-fund/how-the-fund-works/

Just look at the charts and performance section below:

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/s/smith-and-williamson-artificial-intelligence-z-accumulation/charts

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Smith and Williamson's Artificial Intelligence fund as shown some impressive performance since January 2019 to date. 

The link below will highlight this point.

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/s/smith-and-williamson-artificial-intelligence-z-accumulation/charts

Disclaimer: I am investing in this fund.

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@nit2wynit,

What I am merely doing is sharing an investment theme idea. It is up to you all to decide whether you think it has merit  or not. I myself invest in the investment theme threads I have set up so I am 'putting my money where my posts and threads are!'

If you do not agree then that is fine. You may find compelling reasons why one should not invest in the investment theme ideas I am sharing or you may be aware of investment theme ideas which have greater potential or better returns / performance. I am merely sharing where I am investing and outlining some of the key points are reasons why. 

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Posted (edited)

It's a great thing you're doing Trend.  It's refreshing to actually see someone sharing ideas and willing to Put it out there.

I gain new insights each day.  I am looking for long term investments also so I am keen to read what you put forward.

But I have a lot to read elsewhere too :D

 

Edited by nit2wynit

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@nit2wynit,

Thank you for your kind words. I am not saying I am right or wrong. I am merely sharing what I am doing and where I am investing my own capital. 

It is good that you gain new insights each day. Long term investing is where I started well before I traded even a penny or a pound. Even to this date I still invest on a long term basis. That is my core foundation.

 

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Posted (edited)

Just read that Microsoft has invested 1bln in Open AI

Edited by nit2wynit

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@nit2wynit,

Yes that is right.

I include the article in relation to this below:

Microsoft to Invest $1 Billion in Artificial-Intelligence Startup

https://www.wsj.com/articles/microsoft-to-invest-1-billion-in-artificial-intelligence-startup-11563813648

There is so much going on in this space which is really exciting and mind-blowing. As a long term investment theme it is really attractive as the 'herd' have not arrived and have not even began considering allocating enough funds into this area within their investment portfolios.

Some of the best performing returns from investments are when one identifies 'Super Trends' or exceptionally strong trends over a long term horizon which an investor can benefit financially from. If an investor can identify such opportunities and invest in them with a long term timeframe then it can potentially be very rewarding.

 

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This is a very interesting article for some of you who are interested in this from an investment perspective.

The Three Types of Artificial Intelligence: Understanding AI

https://interestingengineering.com/the-three-types-of-artificial-intelligence-understanding-ai

You only have to look at the performance some of the investment funds have achieved over the past couple of years to show what a growing area this is. 

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There are lots of reports coming out in the media and some from the UK Government itself admitting that the UK lags behind when it comes to Robotics and Automation. 

BEIS committee says UK lagging behind in robotics and automation

https://www.governmentcomputing.com/automation/digital-disruptions/uk-robotics-automation-report

This is just one article but there are many which make the same point. 

 

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