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AI Is Real. Here Is What It Means for Investors.

Jeff JorgensenJul 1, 20254 min read

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 are approaching it at Cap Six.

1. It Is Real

This is not another gadget hype cycle, not Google Glass, not Vision Pro, not Meta's VR dream. It is already being used in practical, value-creating ways.

Just last week, my doctor walked in, set his phone down, and said: "I do not have to type anymore, AI is listening and doing it for me."

And I will 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 have not changed a word. What follows below is pretty close to what I would have produced in an hour or two."

2. Learn It

You do not 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 is not to master the tech, it is to stay relevant.

At a minimum, play with tools like ChatGPT and Claude.

3. Understand How to Invest in It

You do not need to pick winners and losers — that is our job. But you do need to think about exposure, public or private.

And it is 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 are making sure our clients have appropriate exposure, not chasing headlines but participating in what is shaping up to be a transformation across sectors.

4. It Is 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 have 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.

5. It Is About Economic Growth, Not Job Destruction

AI will not take your job, unless you let it.

It is not a threat; it is a tool. But like any tool, it creates separation between those who embrace it and those who do not.

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 do not 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.

6. It Has Limitations (But Still Adds Tremendous Value)

No, it cannot 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 is already helping us scale our research, test ideas, and automate distractions so we can focus on higher value work.

Perfect? No. Transformative? Absolutely.

7. It Is Not Scary — It Is Complicated

Used well, it is 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 have had mine. And yes, we are 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 is 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 is no clean answer to that. But there is also no going back.

Bottom line:

AI is real. It is here. And it is accelerating.

At Cap Six, we are learning it, using it, and investing in it thoughtfully, not recklessly.

If you are trying to figure out what this means for you or your clients, give us a call. We are 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

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The performance data shown is that of a composite portfolio for each Cap Six Advisors, LLC ("Cap Six") proprietary investment strategy, calculated using the performance of all portfolios that are invested in accordance with the strategy indicated. The performance data shown is calculated on a total return basis and is presented net of all fees and expenses, including investment advisory fees and transaction costs, and includes realized and unrealized gains and losses and the reinvestment of dividends.

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