David Booth: AI Can't Change How You Invest

According to Fortune, David Booth, founder and chairman of Dimensional Fund Advisors, wrote that while AI may drive major transformations in sectors such as healthcare and transportation, it will not alter the pricing logic of stock and bond markets. He argues that the stock market is essentially the world’s largest information-processing machine, with prices already fully reflecting all available information. Consequently, AI cannot systematically identify mispricings to generate excess returns. Furthermore, he warned investors against concentrating capital in "AI concept stocks," citing the catastrophic collapse of telecom stocks during the internet bubble as a cautionary example. He recommended participating in the market by holding broadly diversified portfolios rather than betting on a single specific winner.