Review: I'm Changing How I Invest My Money Because of AI by Mark Tilbury

In his latest video, seasoned investor Mark Tilbury shares a candid look at how the rapid ascent of artificial intelligence is compelling him to rethink his long-standing investment philosophy. Having spent 35 years building wealth primarily through S&P 500 index funds, Tilbury explains that the current market environment—marked by high concentration in a few AI-focused tech giants—has introduced risks he can no longer ignore. He highlights that the S&P 500 is currently heavily weighted toward a small group of companies whose valuations are driven more by speculative future AI revenue than current earnings. To mitigate this concentration risk, he outlines five strategic shifts he is implementing in his own portfolio.

Tilbury begins by addressing his reliance on the traditional S&P 500, noting that while he still maintains a core position there, he is becoming more cautious about the feedback loop of passive capital pushing tech valuations to extremes. He shifts part of his focus toward global diversification, arguing that relying solely on the American market ignores historical cycles where international markets have outperformed. By utilizing global index funds, he positions his portfolio to capture growth wherever it occurs geographically rather than betting exclusively on the US.

Beyond simple diversification, Tilbury explains his strategy for capturing the benefits of AI without falling into the hype of the most crowded tech stocks. He describes the market in terms of zones and emphasizes the importance of backing underdogs—small and mid-cap companies that are applying AI to solve real-world problems more efficiently than the giants. He views these smaller players as potentially more adaptable in a landscape where AI tools are becoming increasingly interchangeable. To balance the inherent instability created by rapid technological change, he is also increasing his physical and ETF-based gold holdings, viewing them as a hedge against systemic shifts and currency instability. Finally, echoing the cautious approach of legendary investor Warren Buffett, Tilbury emphasizes the necessity of maintaining larger cash reserves. He argues that having liquid cash is essential to avoid being forced into selling assets during a downturn, while also providing the flexibility to acquire quality investments when market corrections inevitably occur. Ultimately, his message is one of preparation rather than prediction; by diversifying across international borders, size categories, and hard assets, he aims to remain resilient regardless of how the AI-driven market cycle unfolds.