I’m Changing How I Invest My Money Because of AI 🤖💰

Mark Tilbury

**I’m Changing How I Invest My Money Because of AI 🤖💰**  Artificial Intelligence is transforming the way we invest money. From stock predictions to automated trading, AI is changing the financial world faster than ever.  In this video, I explain why I’m changing my investment strategy because of AI and how it could impact your financial future.  💡 What You’ll Learn:  * How AI is changing investing * Smart ways to invest in the AI era * Risks and opportunities of AI investing * Future of money and technology  🌍 **International Titles (SEO Boost):**  * USA: AI Is Changing How Americans Invest Money * UK: How AI Is Transforming Investing in the UK * Canada: AI Investing Strategy Used by Canadians * Australia: Why Australians Are Switching to AI Investing * Pakistan: How AI Is Changing Investment Trends in Pakistan  This trend is growing rapidly in countries like the United States, United Kingdom, Canada, Australia, and Pakistan, where investors are already using AI tools to make smarter financial decisions.  👉 Watch till the end to understand how you can adapt and stay ahead in the new AI-driven financial world.  🔥 Follow Mark Tilbury for more money, business, and finance tips!  ---  #ai #investing #money #finance #artificialintelligence #stockmarket #wealth #business #financialfreedom #passiveincome #entrepreneur #trading #futuretech #usa #uk #canada #australia #pakistan #dailymotion #viralvideo  ai investing strategy usa, ai investing uk, ai investing canada, ai investing australia, ai investing pakistan, how to invest with ai, artificial intelligence investing, future of investing, stock market ai tools, smart investing tips, passive income ideas, how to grow money, finance tips 2026, high rpm topics, business finance, ai trading explained, money making strategies

Transcript

00:00AI is forcing me to change how I manage my money.

00:03You see, I've made millions from investing over the past 35 years,

00:06and most of that success has come from one simple strategy.

00:10An S&P 500 low-cost index fund.

00:13S&P 500 index fund.

00:14The S&P American.

00:16The S&P 500.

00:17The S&P 500.

00:18Has returned an average of over 10% per year.

00:21This is known as passive investing,

00:23as your money automatically gets split between the top 500 companies in the USA.

00:29So rather than having to actively pick winning stocks,

00:32you instead just buy a small piece of all of them.

00:35The idea is that even if some stocks crash,

00:38owning lots of them protects you,

00:39and you still benefit as the overall market grows.

00:43I'm not going to lie.

00:43Over the years, this has been proven to be a fantastic strategy.

00:48As I've said, I've earned millions doing exactly this.

00:51However, after making my last video about a potential AI bubble,

00:55I sat down, reviewed my investments, and made a few changes.

00:59So in this video, I'm going to be revealing the five things I changed because of AI.

01:06Believe it or not, for every dollar you invest into the S&P 500,

01:1140 cents of it will go into just 10 companies.

01:14These companies are NVIDIA, Microsoft, Apple, Alphabet, Amazon, Broadcom, Meta, Tesla,

01:22Berkshire Hathaway, and finally, JP Morgan.

01:25As a film in this video, these companies currently make up a whopping 40% of the entire index fund.

01:32What's even more concerning is that NVIDIA alone will get between 7 to 8 cents of every dollar you invest

01:38into the S&P 500.

01:40This is because the index fund is called market cap weighted,

01:43which simply means the more valuable a company becomes,

01:47the bigger slice of the fund it takes up.

01:49So what's actually causing these companies to become more and more valuable?

01:53Well, if we put Berkshire Hathaway and JP Morgan to one side for a moment,

01:58because they don't really fit the same pattern,

02:01something interesting starts to happen.

02:03What we're left with is a group of companies that share one very specific trait.

02:08They're all spending aggressively on the same thing, AI.

02:12You might be thinking, that's great, AI is the future, so this all makes sense.

02:17However, not so fast.

02:19For all these AI companies to justify their current valuations,

02:23they would need to make around $2 trillion in revenue.

02:26To put that into perspective, that's more than NVIDIA, Microsoft, Apple, Alphabet,

02:32Amazon, and Meta combined in 2024.

02:35This shows these companies at the top of the S&P 500 aren't being valued based on what they earn

02:41today,

02:41but on what investors expect them to earn in the future.

02:44Now, this isn't a major issue on its own,

02:47as it's very common for companies to be valued on their future potential.

02:51However, it is quite worrying when it's all linked to one type of technology.

02:55These companies are all essentially making the same bet that AI is the future,

03:00and they're financing it with a ton of debt.

03:03A great example of this is Sam Altman saying he's willing to commit $1.4 trillion in spending for AI

03:10infrastructure,

03:11when his company, OpenAI, is currently only making $13 to $20 billion in yearly revenue.

03:17A lot of this debt is also pretty hidden.

03:19As I discussed in my last video, these companies are bumping up their valuations by passing money around to each

03:26other.

03:27It's a whole complicated mess.

03:29Long story short, it's all a massive feedback loop that keeps reinforcing itself.

03:33Bigger companies attract more passive investment, which pushes their prices higher,

03:38giving them a bigger share of the S&P 500,

03:41and therefore, even more money to grow from passive index fund investors just like us.

03:46This is having a knock-on effect of making the U.S. economy look strong.

03:50However, data from Deutsche Bank actually argues that if it wasn't for AI spending right now,

03:56then we'd already be in a recession.

03:58So what if, instead of prioritizing the biggest companies,

04:01we could spread our money equally across every company in the S&P 500?

04:05Well, we actually can, with something called an equal-weighted S&P 500 index fund.

04:12And on the surface, it looks like the perfect solution.

04:15Instead of having 40% concentrated in the top 10 stocks,

04:20it's around 2%, as every company is treated equally.

04:24By investing in something like this,

04:26there is no doubt that you're less exposed to the potential AI bubble that's currently forming.

04:30However, it's not the perfect solution,

04:34because by trying to limit the money going into larger companies,

04:37it might actually lead to a much bigger problem,

04:39as it follows something called a negative momentum approach,

04:42which sounds complicated, but it's really not.

04:46All it means is that when a company in the S&P 500 starts to take off,

04:50think Tesla during its big run,

04:52the fund automatically sells some of it as it rises,

04:55and uses that money to buy companies that haven't gone up.

04:58So you're effectively selling the winners and buying the losers,

05:01purely to keep everything balanced.

05:04On the flip side, a normal S&P 500 index fund that's market cap weighted doesn't need to trade nearly

05:11as often.

05:11When a company gains momentum, it's simply allowed to take up a bigger share of the index.

05:16Instead of trimming the winners, the fund gradually reduces exposure to smaller companies

05:21to make room for the larger ones.

05:23But why does this matter?

05:25Well, the more a fund trades, the higher the costs are.

05:28Therefore, it's something that's often overlooked and can eat into your gains.

05:31That's why, although I'm putting less money into the S&P 500,

05:36I'm still keeping the majority of my stock market portfolio in the regular market cap weighted version.

05:42So now I've freed up some of my money from the S&P 500,

05:46the real question is, where is it going?

05:48Well, that brings me on to...

05:52I want you to imagine for a moment that the biggest stock market returns over the next 20 years

05:57don't come from the USA.

05:59I know that might sound crazy because for the last 14 years,

06:03the American markets have absolutely dominated.

06:06However, this chart shows which countries made up the largest share of the world's stock market

06:11at different points in history.

06:13And guess what?

06:14It hasn't always been the USA.

06:16I know this looks a bit confusing,

06:17but it's effectively showing the global stock market just like a cake with multiple layers.

06:23Each color represents a different country,

06:25and the thickness of each layer shows the percentage of the world's stock market

06:29that country makes up at that point in time.

06:32The cake itself doesn't change.

06:34It's always the global market.

06:36What changes is which layers get thicker and which ones get thinner.

06:41Let's look back at 1900.

06:43The United Kingdom was the global superpower.

06:46As you can see, they had a nice juicy 24% layer of the global stock market cake.

06:52London was the financial capital of the world.

06:55British companies dominated global trade,

06:58and the empire stretched across huge parts of the globe.

07:01If you were investing at the time,

07:02it would have felt completely obvious that the UK

07:05would remain the dominant economic force for the next 100 years.

07:09Investing anywhere else would have seemed ridiculous.

07:12And yet, that's not how history played out.

07:15I remember seeing something very similar happen later with Japan.

07:18I went to Japan a lot throughout the late 1980s and early 90s.

07:23And at the time, Japanese companies were performing incredibly well,

07:27particularly in areas like cars, electronics, and technology.

07:31Meanwhile, the US economy was struggling.

07:33Inflation was high, growth was slowing,

07:36and a lot of people believed that Japan was the future.

07:39So, if you were investing back then,

07:41would you have bet against Japan and doubled down on America?

07:44Probably not.

07:45However, America bounced back big time.

07:48This shows the only thing that's ever been certain in markets is uncertainty.

07:53Leadership changes, economic dominance shifts,

07:55and no country stays on top forever.

07:58Which is exactly why I don't want my portfolio to rely entirely on one market,

08:03even one as strong as the US.

08:05Because when you only invest in the S&P 500,

08:07you completely miss out on companies like TSMC,

08:11Samsung, Toyota, Tencent, AstraZeneca, and HSBC.

08:17These are global businesses operating at huge scale,

08:21driving real growth, yet they're excluded

08:23purely because of where their headquarters are based.

08:26So, how am I actually investing globally?

08:28Well, this is Trading212.

08:30It's the broker I personally use.

08:32And if you go to the search bar and type in VWRP,

08:37you'll find this global stock market fund

08:39that gives you instant exposure to pretty much the entire world's economy.

08:44This single fund invests in around 3,700 to 3,800 companies

08:49spread across more than 45 developed and emerging countries,

08:53including the US, UK, Europe, Japan,

08:57and fast-growing economies like China and India.

09:00And yes, I know if you dig into what these funds actually hold,

09:03you'll see they're still heavily dominated by US companies.

09:06The difference is what happens over time.

09:09A global fund automatically rebalances.

09:11If the US becomes less dominant and China or another country starts outperforming,

09:16the fund adjusts.

09:18If the US continues to lead, it adjusts for that too.

09:21It also has an extremely low expense ratio of 0.19%.

09:25That means for every $1,000 invested,

09:29you're paying roughly $1.90 annually in fees,

09:32which is pretty cheap.

09:33If you're based in the USA,

09:35then I'd recommend looking into Fidelity's international fund

09:38with the ticker FSPSX.

09:41If all this sounds a bit complicated,

09:43Trading212 actually make it really simple with their model pies.

09:46These are pre-built, globally diversified portfolios

09:50put together by professional asset managers.

09:53And you can easily choose a risk level that feels right for you.

09:56Since I was planning to talk about Trading212 anyway,

09:59I reached out to see if they'd like to sponsor this portion of the video.

10:03They agreed and are giving you free fractional shares worth up to £100

10:06when you scan this QR code or enter the promo code,

10:10Tilbury, by tapping this menu and heading to the promo code section.

10:15If you're new to investing,

10:16then you can put in as little as £1,

10:17claim your free fractional shares and start exploring the app before fully jumping in.

10:22You can also invite your friends and once they fund their accounts,

10:25you'll both get free fractional shares.

10:29The best piece of advice I've ever been given about building real wealth

10:33is that you don't get rich by following the crowd.

10:35You get rich by being early.

10:38I've applied this thinking throughout my whole life.

10:40So as well as protecting myself against the potential AI bubble,

10:44I also think it's important to look for a way to benefit from this new technology.

10:48So let me talk you through where I see the biggest opportunities at the moment.

10:52The market naturally breaks down into four clear zones,

10:55each one filled with different types of companies.

10:58Well, that's how I look at it anyway.

11:00Let's start with this one.

11:01I call it the crowded zone.

11:04Companies in this zone have a large market cap and expensive valuation.

11:07Think the top companies in the S&P 500 such as NVIDIA, Tesla, and Meta.

11:15It's crowded as everyone is already investing here, even passive investors.

11:19Under that, we have the defensive zone.

11:22This includes companies like McDonald's, Walmart, and Coca-Cola.

11:27These are businesses that people rely on no matter what the economy is doing.

11:31These are the kinds of companies value investors like Warren Buffett love.

11:34Their valuations aren't low, but they're good value because their earnings are predictable,

11:39demand is stable, and they keep generating cash year after year.

11:43In the top left is the speculative zone.

11:46These are smaller companies that are extremely hyped

11:48and have valuations that far exceed their current revenue.

11:52They usually have low or modest market caps,

11:55but very expensive stock prices

11:57because investors are betting on massive future returns.

12:00Examples include companies like Beyond Meat, Peloton, and AMC during their hype phases.

12:07I personally stay away from these kinds of investments

12:10as they're highly speculative and driven by momentum and internet hype.

12:14If you ask me, it's closer to gambling.

12:16That brings us to this one.

12:17I call it the overlooked zone.

12:20Now, this is where I believe there is a ton of opportunity,

12:24especially when it comes to AI.

12:26Let me explain.

12:27The companies in this crowded zone are all betting on the fact

12:31that whoever spends the most money developing the absolute best AI model

12:35will have all the profits.

12:37But what if that isn't the case?

12:39A pattern I'm seeing more and more amongst startups,

12:42small cap, and medium cap companies

12:44is they're actually giving the user the ability to pick

12:47between different AI models within their software.

12:50They let users choose between Claude, ChatGPT, and Gemini, just to name a few.

12:54This is important because they're now all getting pretty close in abilities.

12:58So the biggest factor in what a user chooses might end up being the price,

13:02which would then lead these companies into a price war,

13:05which is great for people using AI,

13:07but not so great for huge companies that have spent billions developing these AI models.

13:12It's kind of like petrol or gas if you're American.

13:15Imagine one station sells it for $1.50 per liter,

13:18and another sells petrol that's slightly better quality for $3 per liter.

13:24Sure, a few people will still pay the extra for the premium option,

13:27but most people will just buy the cheaper fuel

13:30because it pretty much does the same thing.

13:32And that's the real point.

13:34When new technology becomes good enough and interchangeable,

13:37the value doesn't stay with the companies that spent the most money building it.

13:40It flows to the companies that use it in the smartest way.

13:43So that's exactly why I'm backing the underdogs.

13:46Small and mid-cap businesses don't need to win the AI arms race.

13:50They just need to apply AI to real problems at a lower cost without carrying billions in debt.

13:57That's why I'm investing in a couple of small and mid-cap funds,

14:00as well as actively looking for AI startups to invest in.

14:04So if you're a founder and you're looking for an experienced investor

14:07with a large social media following,

14:09then feel free to reach out using the email in the description.

14:12I'm currently considering proposals.

14:14Look, if I'm wrong, I lose a small amount being early.

14:18But if I'm right, I'm positioned where there could be a massive upside.

14:24I feel like a lot of people don't understand that every major leap in technology creates opportunity,

14:29but more importantly, instability.

14:32I mean, AI isn't just changing companies,

14:35it's changing power, currencies and trust in the system.

14:38That's why I'm increasing my gold reserves.

14:40And I'm not alone.

14:42Check this out.

14:43This chart shows China's gold levels between 2009 and 2025.

14:48Up to 2023, they were steadily buying gold.

14:51But as you can see, in recent years, they've been buying up more gold than ever.

14:56But why does this matter for everyday investors like us?

14:59Well, many people believe China is trying to replace the US dollar,

15:03as they're not just buying it quietly, they're making it usable.

15:06They've been building something called the Gold Corridor,

15:09which allows gold to be stored across different locations and used as a form of trust in international trade,

15:15especially with Brazil, Russia, India and South Africa, otherwise known as the BRICS nations.

15:22And it's not just China.

15:23Gold has now overtaken US treasuries as the world's largest foreign reserve asset held by central banks worldwide,

15:30for the first time since 1996.

15:33So why are we seeing this sudden shift towards gold?

15:36Well, as of 2025, gold has been reclassified as a Basel III tier one asset.

15:42Put simply, gold can now be treated the same as cash or US treasuries on a bank's balance sheet,

15:47which is a big change because before this reclassification, banks weren't allowed to count its full value.

15:53This is having a big effect on the price of gold, because before this change, most financial institutions like central

15:59banks,

16:00sovereign wealth funds and pension funds kept around 20% of their reserves in gold and equivalent hard assets.

16:07However, the Bank of America have now published new guidelines saying the gold reserve should be closer to 30%.

16:13That 10% increase is driving up demand because you can't print more gold.

16:18Some people are even saying in five years, gold could be worth double what it is today.

16:23And I don't think that's absolutely unreasonable.

16:25I won't go much deeper into gold in this video, but if you want me to break it down in

16:29more detail in a future one,

16:31just give this video a thumbs up and let me know.

16:33If we get, let's say, 150,000 likes, then I'll make one right away.

16:38For now, let's skip to the part I know a lot of you care about.

16:41How do you actually invest in gold?

16:43I personally do it a couple of different ways.

16:45Firstly, I buy physical gold.

16:48This is my long-term insurance.

16:50And as I'm old school, I like having something I can actually hold.

16:54Secondly, I dollar cost average into this iShares physical gold ETF on trading 212.

17:00I like doing this because it gives me a lot more flexibility to gradually buy in and move things around

17:05when I need to.

17:06So to be clear, I'm not trying to buy at the best possible time.

17:10And I'm also not going all in on gold.

17:12I'm simply allocating a small strategic portion of my portfolio to gold, the same way countries and major financial institutions

17:20are doing.

17:23The biggest mistake young people make when investing is not having a big enough cash reserve in case something happens

17:29in their life, which often forces them to sell their investments at the worst possible time.

17:34Even as an older guy, this is still something I have to consider, especially if we're in an AI bubble.

17:40And you might be interested to know that Warren Buffett, the most successful investor of all time, is currently increasing

17:46his cash pile.

17:47Check this out.

17:48As you can see, he's been aggressively increasing his cash pile over the last couple of years.

17:53And as of Q1 2025, he has a whopping $347.7 billion in cash and cash equivalents.

18:02This makes sense as he's a value investor and only buys when the price makes sense.

18:07And right now, he simply doesn't see many opportunities that justify putting that cash to work.

18:13That's why I'm going to be holding slightly more cash because if the markets crash, I don't want it to

18:18negatively affect my life.

18:20Having a bit more cash on hand also gives you the opportunity to buy more investments when the market crashes.

18:25And I say when, not if, because it always happens at some point.

18:30I was also focused on improving my money-making skills during the dot-com crash in the early 2000s.

18:36And that came in super handy as I was able to generate fast money that I could then invest into

18:41the stock market.

18:42On that note, I'm actually teaching you the fastest path to making $10,000 a month online without needing startup

18:49capital or business experience in a free live online event very soon.

18:54So if you're serious about increasing your income, then make sure to sign up for that.

18:58I'll leave a link in the description.

18:59This is super important because cash is king during a stock market crash.

19:06I've seen way too many people wait years for a market drop and miss out on massive gains in the

19:11process.

19:12That's why my strategy is simple.

19:14I'm still going to keep putting most of my money into the S&P 500 so that if AI continues

19:19driving growth, I'm invested in the businesses leading that change.

19:23But to protect myself from a potential AI bubble, I'm also diversifying into the global markets, small and mid-cap

19:31stocks, gold and cash.

19:33Because the truth is, nobody knows what the market will do next.

19:36So instead of trying to predict it, I'm preparing for both outcomes.

19:40If you want to learn exactly how to invest for beginners step by step, then I'm going to leave that

19:44video right up there.

19:46But don't click on it just yet.

19:47Make sure to subscribe if you want to grow your wealth.

19:49Okay, I'll see you over there.

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