HALO assets hedge AI obsolescence risk
The guest proposed investing in 'HALO' (Heavy Asset, Low Obsolescence) companies like utilities, copper miners, and railroads to hedge against AI-driven business model obsolescence.
The argument
The guest argued that traditional value investing is risky if AI renders a company obsolete; instead, investors should target heavy-asset businesses that AI cannot replace but will make more efficient.
The thesis, stress-tested
✓ What validates it
- ✓Increased utility power demand driven by AI data centers
- ✓Rising copper demand and prices
▸ Risks discussed
- ▸Cyclical downturns in commodities like copper and aluminum
- ▸High capital intensity of heavy-asset businesses
Hear it yourself
"Tell us a little bit about the story of the two x MicroStrategy ETF because MicroStrategy's got a lot of its own sort of, products out there. You feel like you get lost in the mix a little bit with their alphabet super stuff. Their security offering factory. Yeah. A a little bit. And and, you know, we do a lot on micro strategies. So we, you know, we launched two x micro strategy at some point back in 2023, and, you know, we hit it right off the bat. You know, again, you know, knowing kinda where the puck is gonna be, you know, there are a lot of kinda these crypto companies, what's gonna be the big one. It was MicroStrategy."
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