7 Quick Thoughts on AI
Written by Jeff Jorgensen, Chief Investment Officer
With the QQQ (now ~50% tech) up over 30% since its post "Liberation Day" low on April 8, 2025, it feels like the right moment to share some thoughts on AI, not as a trend to trade but what it means for us, our investors, and how we’re approaching it at Cap Six.
- It’s Real
This isn’t another gadget hype cycle, not Google Glass, not Vision Pro, not Meta’s VR dream. It’s already being used in practical, value-creating ways.
Just last week, my doctor walked in, set his phone down, and said: “I don’t have to type anymore, AI is listening and doing it for me.”
And I’ll say this, the visit was better. More eye contact. More attention. Less distraction.
Even Howard Marks, one of the most respected investors and communicators in the business, recently used Perplexity AI to help draft a section of his latest investor letter. He wrote:
I have simplified the format and added emphasis, but haven’t changed a word. What follows below is pretty close to what I would have produced in an hour or two.
- Learn It
You don’t have to become an engineer. But you do need to get familiar.
Coble and I are currently in an “AI Accelerator” course alongside professionals across industries. The goal isn’t to master the tech, it’s to stay relevant.
At a minimum, play with tools like ChatGPT and Claude.
- Understand How to Invest in It
You don’t need to pick winners and losers — that’s our job. But you do need to think about exposure, public or private.
And it’s not just about semiconductors and software:
- Infrastructure (data center cooling, power delivery, logistics)
- Energy (massive uptick in demand)
- Industrials (automation, modernization)
At Cap Six, we’re making sure our clients have appropriate exposure, not chasing headlines but participating in what’s shaping up to be a transformation across sectors.
- It’s a Competitive Advantage
Think of AI as a junior analyst or associate, now in your pocket and available 24/7. A co-conspirator.
If you’ve worked in banking or law, you know senior roles are dependent on support.
This is that support, without the overhead, politics or training costs.
Use it and amplify your capabilities.
- It’s About Economic Growth, Not Job Destruction
AI won’t take your job, unless you let it.
It’s not a threat; it’s a tool. But like any tool, it creates separation between those who embrace it and those who don’t.
As Jensen Huang of Nvidia said:
AI is not going to take your job. The person who uses AI is going to take your job.
Technology shifts don’t eliminate opportunity, they redefine it. Economic growth happens through specialization, productivity, and the freeing up of human capacity to do higher-leverage work. But it is up to you to be ready for the shift.
- It Has Limitations (But Still Adds Tremendous Value)
No, it can’t build Cap Six.
It has structural memory limitations, and it stumbles with logic and high-complexity problem solving. It also makes confident-sounding mistakes.
But at Cap Six it’s already helping us scale our research, test ideas, and automate distractions so we can focus on higher value work.
Perfect? No. Transformative? Absolutely.
- It’s Not Scary — It’s Complicated
Used well, it’s fun to work with, powerful, and a major unlock.
Still, I have real concerns:
Education: AI works great for those who already know how to write or code, for example. What about the next generation? Will AI become a crutch that prevents them from learning foundational skills like writing, critical thinking, and independent problem solving?
Entry-level jobs: I’ve had mine. And yes, we’re now using AI to eliminate many of them. What happens when we remove the traditional training grounds for developing talent?
Copyright & ownership: Who owns AI-generated content — and are the original creators being taken advantage of?
Deepfakes & misinformation: The risks here are real and rising.
Human connection: It’s one more reason to interact with screens instead of each other. What are the consequences, especially for relationship quality and mental health?
Energy use: AI data centers alone could consume 85–134 TWh per year by 2027*—roughly the entire electricity usage of the Netherlands or Sweden.
There’s no clean answer to that. But there’s also no going back.
Bottom line:
AI is real. It’s here. And it’s accelerating.
At Cap Six, we’re learning it, using it, and investing in it thoughtfully, not recklessly.
If you’re trying to figure out what this means for you or your clients, give us a call. We’re happy to help.
And in case you were wondering, this article was written with the help of AI.
*Source: 4E TPC, Data Centre Energy Use: Critical Review of Models and Results*
