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Investment Strategies / Mechanical Investing
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Author: mungofitch 🐝🐝 SILVER
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Number: of 5384 
Subject: Re: If AI juices productivity, small stocks are king
Date: 02/02/26 11:31 AM
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"Every 1% labor cost saving translates to an aprox. 2% gain in the S&P 500 but 6,4% in the Russell2000"

That reasoning presupposes that the ability to deploy LLMs in a profitable way to reduce labour cost, as a percentage of that cost, is entirely independent of business size or industry.

Which might well be true, but I wouldn't bet the farm on that assumption. I have a hunch that Meta's programmers are going to get more of a productivity boost than Granite Construction Inc.

Jim
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