This article was originally published on Halloween, 2018, but we’re getting a ton of new questions about it so they must be running the ad heavily again. The ad has NOT been updated in any meaningful way, but some significant things have changed for this stock over the past year (though the stock price is right around where it was a year ago), so I’ll go through and add a few updates here and there as warranted.
Paul Mampilly is pitching his Profits Unlimited newsletter with a long spiel about artificial intelligence (AI), which seems to mostly be a tease from a presentation he recently made on stage at a Banyan Hill “Total Wealth Symposium” in Las Vegas (well, in September of 2018 — so it was “recent” when the ad started running).
And we like to think for ourselves, of course, so I thought I’d dig into the clues he drops and see if we can name that stock for you — maybe you’d love his newsletter, maybe you’d hate it, but if you subscribe to a newsletter just to find out about a secret stock… well, odds are pretty bad that you’ll be able to think rationally and independently about that stock afterward. Lots of biases get in the way, including: We all have a tendency to justify purchases, so you’ll probably want to love that newsletter because you just paid for it… and most investors end up being very strongly influenced by the first piece of information they receive about a particular stock, so if you buy into this “76,000% gains!” pitch without any context, you’re setting yourself up for disappointment.
So with that said, what’s the story? Mampilly here is pitching us on the huge growth in artificial intelligence… here’s a little taste of the ad:
“Major consulting firms predict this technology will create 2.3 million jobs in the next two years and give businesses the chance to raise profits, across the board, by nearly 50%.
“Which is why the big money is piling in.
“Microsoft has dedicated $12 billion to this technology.
“IBM is investing $15 billion.
“Google is spending $30 billion.
“Intel has already put up $32 billion to acquire multiple startups in this space, for the single goal of pushing this technology forward.”
And the 76,000% number that he throws out as red meat for us is just pulled from a big picture speculation:
“At $20 billion, this technology is tiny compared to the internet, smartphones and computers.
“However, the world’s leading researchers estimate it will explode into a $15.7 trillion industry in the next five years, growing bigger than all of these — COMBINED.
“That’s a 76,000% growth.”
You can throw around pretty much any numbers you want for that kind of big picture stuff, they won’t mean anything. Yes, we concede the artificial intelligence is a massive focus of most big tech firms, and is makin