The Only AI Proof Stock Also Pays 6% Dividends

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[00:00:04] Doug McIntyre: Lee, I wanna tell you what I think investors need to take into account now. More than inflation. Yep. More than tariffs. More than the unemployment rate. More than the consumer price index. Alright. And that is the effect that AI is gonna have on publicly traded companies. And I don’t mean in general like the s and p 500, but each of the companies you could invest in.

[00:00:30] Doug McIntyre: Right. And the effect it will have on the general economy. So let me start with, individual companies. Microsoft is an, advanced in, artificial intelligence as any major public company in the world. They’ve already said. About 20% of their software programming is now done by artificial intelligence.

[00:00:54] Doug McIntyre: Okay? Uh oh. And we’re, in early stages here. There’s no one in the AI business who’s a genius, who doesn’t say We’re, in the first 10% here. we’re,

[00:01:05] Lee Jackson: some have said, we’re still in the on deck circle. So how much does that room does that have to go?

[00:01:10] Doug McIntyre: So what does it do to Microsoft in two ways?

[00:01:15] Doug McIntyre: If Microsoft can cut 30% of its employees, it saves hundreds of millions of dollars. Just for starters, its margins go way up. Oh,

[00:01:22] Lee Jackson: Wow.

[00:01:23] Doug McIntyre: Incredible. Yeah. It also means they don’t do that unless they’re highly successful selling AI based products to other people. So there’s, right, there’s the delta between the success of, new AI products, AI and Azure, so this should give them a lift in revenue, but they could tear.

[00:01:44] Doug McIntyre: An unbelievable amount of expenses outta there. So if you’re an investor in Microsoft and you plan to hold it two or three years, I would ask the question above all other questions. What does artificial intelligence do to their top line and what it’s do to their bottom line? Because that’s gonna determine over the next two or three years whether Microsoft doubles.

[00:02:06] Doug McIntyre: Or whether drop six more than anything else. You can’t name anything for me that’s gonna affect Microsoft more. So I’m now gonna go to another company.

[00:02:15] Lee Jackson: buy your premise on all of that. It could be a double win or a double loss.

[00:02:23] Doug McIntyre: And then, that’s Eric Schmidt calling. He says, you’re right. That’s Eric. Eric Schmidt calling, former chairman of Google. So I’m, about to quote him. Let’s move to Altria. A cigarette company, they changed their name so people wouldn’t feel guilty about investing in it. But that’s a company that’s close to being AI proof you’re making cigarettes.

[00:02:48] Doug McIntyre: Could AI make the cigarette manufacturing part of the business, more efficient? It’s automated anyway already. Yeah, so I mean, maybe more, maybe less. I don’t know. is AI gonna make people smoke more or less? because of the anxiety, people smoke more, but to me that is as close to AI proof as a company has.

[00:03:13] Doug McIntyre: So if I’m an investor and I look at a company like Altria, I say, is that gonna drive the stock up by double or cut it in half? No. So I think that people need to look at their portfolio and ask themselves those basic questions. What does AI do to the top line? What does it do to the cost structure?

[00:03:33] Doug McIntyre: Because in some cases this is gonna be profound.

[00:03:38] Lee Jackson: It profound, it could be staggering at some juncture. And whether you and I are around in 20 years to see what the full manifestation is, that’s a toss up maybe. But if, we are around one thing I will tell you, there’s gonna be companies like Waste Management.

[00:03:53] Lee Jackson: There’s gonna be companies that rely on people to take care of the service they provide. Now, waste Management amazingly comes here in Tupelo twice a week. They come on Mondays and Thursdays, and one guy doesn’t. One guy doesn’t. Just one. Yeah. He drives the truck, has the thing that picks it up and not the, two or three guys, like when we were kids and he’d have guys throwing garbage cans in the back.

[00:04:23] Lee Jackson: I theoretically, when there’s AI driven trucks, they don’t need any, their driver guy, they’ll, no.

[00:04:29] Doug McIntyre: listen, the, driver will be gone.

[00:04:32] Lee Jackson: Listen Companies where people are centric, I mean, it’s long been done on, production lines. at Ford and the big three and all those.

[00:04:41] Lee Jackson: But boy, any company that is heavily invested in people, they can have their headcount cut in half. Yeah.

[00:04:49] Doug McIntyre: I’d like to be a fireman in the future.

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