Mark Schmehl is a successful portfolio manager with Fidelity. One of the funds he manages returned an impressive 57% in profit in 2024. In this video, he responds to the DeepSeek AI model breakthrough.
"Invest in companies actually using AI rather than those selling it!"
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Key Takeaways
- Mark has been favouring users of AI over infrastructure/computer companies in anticipation of a scenario like this. It just happened faster than expected (over one weekend).
- DeepSeek is real and the model is a breakthrough - the price of intelligence just fell 80%.
- What’s the impact when the price of a commodity falls this much? Short answer is: it’s good for buyers and bad for sellers.
- This has just accelerated Mark's existing preference from the past year - he has been looking for users of AI and less for sellers of AI.
- Mark moves quickly, just like the market, and continues to move into positions of the market where users of AI's costs are improving.
- It's a narrow group of companies that don't benefit from this change we've just experienced.
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