Why I’m Not Flocking to AI Stocks — And What I’m Doing Instead
Every few years, the market finds a new obsession. Today, it’s AI.
Headlines scream that artificial intelligence will reshape the world. Commentators predict trillion-dollar winners. Investors rush in, convinced they’ve found “the next big one.”
But here’s the truth strategic thinkers understand:
Hype creates noise, not returns.
Speculation creates excitement, not certainty.
If you want better results than the crowd, you can’t think like the crowd.
Core Concepts
AI may change the world — but that doesn’t make every AI stock a good investment.
Modules 1–3 of REAL Stock Investing teach a critical principle:
Investment is not guesswork. It’s analysis, probability, and discipline.
Benjamin Graham said an investment requires:
- Thorough analysis
- Safety of principal
- Adequate return
AI hype checks none of those boxes.
Why Hype ≠ Quality
Stock prices move on expectations. Intrinsic value grows on fundamentals:
- Earnings
- Return on capital
- Durable advantages
- Low debt
REAL Stocks are priced for reality, not perfection.
Why “Finding the Winner” Is a Losing Game
Predicting the next AI giant means predicting:
- Technology
- Regulation
- Competitive dynamics
- Adoption curves
- Capital needs
- Consumer behavior
That’s not investing. That’s gambling with extra steps.
Why REAL Investors Think Differently
REAL Investors follow principles:
- High return on capital
- High earnings growth
- Durable competitive advantages
- Low debt
These principles have built wealth for decades — and will long after the AI hype fades.
Key Insights
Insight 1: Not Every Great Technology Makes a Great Stock
History is full of breakthroughs whose investors lost money:
- Early internet
- Smartphones
- Solar
- EVs
- Genomics
Innovation ≠ profitability.
Profitability ≠ durability.
Durability ≠ good returns at any price.
Insight 2: High Prices Raise Risk, Not Returns
The more you pay, the lower your returns.
AI stocks are priced for flawless execution — which rarely happens.
Insight 3: Real Wealth Comes from Predictability, Not Predictions
REAL Investors prefer:
- Consistent earnings growth
- Strong fundamentals
- Logical decision-making
Not guessing which CEO says “AI” most convincingly.
How to Apply This
Step 1: Let Others Chase the Shiny Object
Crowd psychology is powerful. So is resisting it.
Step 2: Anchor Yourself in REAL Stock Criteria
Before investing, ask:
- Does it earn high returns on capital?
- Are earnings growing consistently?
- Are advantages durable?
- Is debt low?
Most AI stocks fail at least one — often all four.
Step 3: Seek Predictable Compounding
REAL Stocks quietly compound while hype cycles come and go.
Your Turn
What do you think when you see everyone piling into the same trend?
Do you feel the urge to join — or the clarity to step back?
Final Thoughts
The market will always have a new frenzy. But the game hasn’t changed.
Crowds chase excitement.
Investors chase results.
REAL Stock Investing isn’t about avoiding innovation — it’s about avoiding speculation.
Ready to Learn More?
If you’re tired of hype cycles and want a strategy built on logic, math, and predictable compounding, join the Priority Notification List.
The free modules walk you through:
- The foundation of REAL Stock Investing and why it consistently beats the market
- The mindset upgrade every successful investor needs
- The four REAL criteria that separate exceptional companies from average ones
- How compounding actually builds wealth when you stop working against it
- A simple decision framework built for engineers, analysts, and systems thinkers
Join at SchoolingWallStreet.com and start investing like a strategist, not a speculator.
