Core Plus AI Three Ways
Gregg@alpsgm
−3.0%
since Oct 3
The idea
I believe AI is a general-purpose technology that will reshape productivity, power demand, and physical work over the coming decade, so I own it the simple way. About two thirds sits in broad, low-cost index funds, with the rest split evenly across compute winners, the overlooked bottlenecks like power and grid gear, and physical AI through robotics and automation. I favor established businesses with real cash flows over perfection-priced stories, and I keep a small cash reserve to add during fear. I'd reconsider if the broad productivity story stalls out.
What it owns
- Broad, diversified ownership of high-quality businesses compounds steadily while allowing room for more specialized positions. · Vanguard Total Stock Market ETFIt provides broad ownership of American businesses through a single, low-cost, tax-efficient holding., iShares MSCI USA Quality Factor ETFIt tilts the core toward companies with strong cash flows, low leverage, and durable competitive advantages rather than unprofitable growth stories., Vanguard S&P 500 ETFIt provides liquid, low-cost exposure to the five hundred largest American companies and serves as the large-cap backbone of the core., Vanguard Total International Stock ETFIt holds developed and emerging markets outside the United States so the core portfolio stays geographically diversified.65%
- Companies that design, manufacture, or deploy the chips and infrastructure that power AI training and inference at scale. · NVIDIA CorporationIts chips and software are the dominant standard for AI model training and inference, positioning it to compound with the entire AI infrastructure buildout., Taiwan Semiconductor ManufacturingIt manufactures nearly every advanced AI chip in commercial production, making it a critical bottleneck through which the entire sector flows., BroadcomIt designs custom AI chips and the networking silicon connecting them for major cloud providers seeking to reduce their compute costs., MicrosoftIt delivers AI capabilities through established software and cloud services that companies already pay for, backed by enormous cash flow generation.10%
- Robotics and automation bring AI into the physical world earlier in adoption and with less crowded valuations than pure software plays. · Intuitive SurgicalIts surgical robots are installed in thousands of hospitals, generate recurring procedure-based revenue, and face no established rival system., Rockwell AutomationIt sells control systems and automation software that factories use to deploy AI and robotics, an established business with real cash generation., TeradyneIt tests AI chips in record volume during manufacturing and owns a leading robotics company, touching both chip demand and physical automation., Deere & CompanyIt integrates autonomy and artificial intelligence into tractors sold to an established customer base with a century of trust and real cash flows., SymboticIt deploys warehouse robots with Walmart as its major customer and represents higher risk than other positions in the take, requiring improved economics.10%
- Power generation, grid equipment, cooling, networking, and chip manufacturing tools are scarce inputs the AI buildout cannot skip. · GE VernovaIt manufactures gas turbines and grid equipment that utilities are ordering years in advance to meet rising electricity demand from data centers., Eaton CorporationIt supplies the switchgear and power management equipment that data centers require, a role unlikely to be disrupted by competition., ASML HoldingIt is the sole manufacturer of extreme ultraviolet lithography machines required to produce advanced AI chips, holding an uncontested bottleneck., Arista NetworksIt sells networking equipment that connects thousands of AI chips into clusters at major cloud providers, a role that becomes more critical as cluster sizes grow., Vertiv HoldingsIt supplies liquid cooling and power management systems inside data centers where thermal management has become a bottleneck limiting AI deployment., Constellation EnergyIt operates the largest United States nuclear fleet and is signing long-term power contracts with AI companies seeking reliable, carbon-free electricity.10%
- Cash5%