The Practical Islamic Finance Podcast

My Main Investing Thesis For The Next Few Years

March 14, 2024 Rakaan Kayali
The Practical Islamic Finance Podcast
My Main Investing Thesis For The Next Few Years
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My Main Investing Thesis For The Next Few Years

 In this podcast episode, the host discusses their main investing thesis for the coming years, emphasizing the significant role of Artificial Intelligence (AI) and its ripple effects on various industries.

Time Stamps:

  • Introduction to AI Growth: 00:00 - 05:01
  • Investment Opportunities: 05:07 - 04:43
  • Electricity Demand: 04:53 - 03:14
  • Lithium Mining: 03:22 - 04:21
  • Overall Thesis: 04:29 - 05:28
  • Quick Discussion with The Audience : 05:34 - 08:06
  • Closing Remarks: 08:11 - 08:27



Our podcast is about helping people ethically build wealth. We cover a broad range of topics including stock and crypto investing, product reviews, and general financial well-being.


Anything you hear in this video is an opinion. It is not personalized financial advice. Make sure you do your due diligence before making any investment decisions.

As-salamu alaykum everyone, I hope you are doing well. I got a short but very valuable video for you today. We're going to talk about basically the industries that I see money. Though it's not financial advice, be sure to do your own due diligence before making any investing decisions. So as we know, the growth of AI has been nothing short of stunning in terms of the usage of AI and the capabilities of AI. And in fact, it's projected to grow around 5X in the next five years. So this is going to be an industry that, you know, eats a lot of other industry and becomes an increasingly more important part of our lives. And whenever there is something that gains traction and gains and expands its impact on humanity, there is a lot of money to be made. And as investors, we should always be looking for these things. What are the trends that are making the most impact in people's lives and try to invest there. So an obvious sort of first derivative result of the growth of AI is the fact that there's a need for computational chips, which AI relies on. So you saw, for example, NVIDIA, the growth that it has experienced has been nothing short of remarkable. It's almost odd whenever you look at NVIDIA stock price and it's not green. However, there are second and third order derivatives from the impact of AI that I think are less crowded investments. So for example, transformers. Transformers are the parts that you need in order to have the electricity that comes off the grid at the voltage you need it to be in order to use it in whatever machines that you want to use the electricity. So we're seeing that the lead times for these transformers and for generators are actually increasing with time. Not only that, an obvious but perhaps less talked about impact of the growth in AI is the fact that the demand for electricity is going to increase substantially beyond the ability of the grid to expand. The current infrastructure that we have, we got to after 100 plus years of work and the demand for electricity is probably going to double in the next few years. And so this means that there's going to be a shortage of electricity and prices of electricity are probably going to go up. There's also going to be a need for all of the other products that go with and support electrical grid expansion. At the most obvious level for copper, for example, copper wires are going to be more in demand than ever before. And the electricity generation is not always going to correspond with electricity consumption and therefore you're going to need batteries to bridge that gap. I've spoken before about lithium and how I felt that lithium was and lithium miners were perhaps underappreciated at this point in history just because of lithium's price going down. But the battery need is set to expand dramatically. Lithium is an essential component in the batteries of the future and therefore, you know, lithium mining, some lithium mining stocks I've had some interest in. But any sort of battery technology, like the leaders in battery technology, the leaders in battery production, I think they're all going to be printing money. I think the industries that are associated with providing the infrastructure needed for AI beyond just the obvious computational chips, everyone who is involved in setting up this industry is going to be printing money for the next few years. This is a direct result of the expansion of AI and the increase in its importance. So this is basically my main thesis behind my investing at Current. Obviously there are, you know, other themes here. But the main thesis here is that AI is probably the most important technology of our lifetimes. It's going to change everything. It's going to change the way we live our lives, the things that we spend our time on, what we do for work. It's going to change everything. And the closer you are to this industry in your investing dollars, I think the better you're going to do for the next few years. And you don't necessarily have to be directly invested in AI company or directly invested in computational chips to do well. You just need to, and in fact, the second or third order derivative impacts will probably be less crowded from an investor point of view. And therefore there's probably going to be more money to be made there. So that's just the quick thought that I wanted to share with you guys. And I'll take questions very quickly. Salam brother, what are your thoughts on the recent CPI number? I think my thoughts about this is that inflation is not under control yet, but the CPI number was not bad enough for me to think that the Fed is going to be tempted to raise interest rates. I think it's going to keep interest rates as they are until we get a CPI number that is encouraging. What we saw was basically it met expectations in some items. It was hotter than expectations. But overall, I don't think there was a change in my outlook for this year, which is probably two to three rate cuts this year. But then again, it does depend on, you know, inflation coming down. Hey Salamat Salim, your buy price hasn't changed for crypto. Should we buy more Solana or wait for a dip to the buy price target in PIF watchlist? So Salim, I'm going to say like for the like specific buy price, sell price matters. Those are for PIF members. So please share your thoughts on our discord rather than here. I do have Islamic, I do have a video on Forex. So please watch that and make your own conclusions. Very briefly, I think Forex and its majority, like if you're trading one currency for another, there's nothing wrong with that. Obviously you do that all the time. If you're, you know, traveling to a different place, you need a currency, you need to trade and that's Forex. So it stands for foreign exchange. However, the Forex trading, which people ask me about often involves almost a hundred percent of the time involves derivatives. And these derivatives are essentially creating risk out of nothing. And therefore I avoid using them. I'm uncomfortable with them from a Sharia perspective. And when people ask me, I tell them I'm uncomfortable with it from a Sharia standpoint, Islamic Forex account or, or, or not, you know, whether that word exists or not, doesn't change the fact that this is what's happening behind the scenes. I've yet to see an Islamic Forex account with something substantially different. So with that being said, thank you all for coming and until next time, Salaam Alaikum and peace be upon you all.

Introduction to AI Growth
Lithium Mining
Overall Thesis
Electricity Demand
Investment Opportunities
Audience Interaction
Closing Remarks