Quarterly Newsletter – Using History As A Guide For Investing In AI

Welcome to Auscap’s October 2026 Quarterly Newsletter titled – Using History As A Guide For Investing In AI.

Artificial intelligence is highly likely to change the world as we know it, in ways that we probably will not anticipate. The same can be said for many developments that have occurred over the last few hundred years. Each development changed how people worked, communicated, shopped and were entertained, and in doing so remade entire industries and reordered which companies sat at the top of them. Artificial intelligence looks set to take its place in that lineage. The question is, does being right about a technology’s importance mean being right about whether to invest in it?

In this newsletter we discuss AI from an investment perspective, using history as a guide. We also detail the performance and portfolio positioning of the funds in September 2026.

Learning Outcomes: After reading this newsletter, readers should gain an understanding of the nexus between transformational technology and investment returns based on historical examples such as the railways, electrification and the internet. Readers should be able to apply this understanding to an assessment of current AI-related investment opportunities and the durability of likely investment returns having regard to relevant considerations including competition, economic moats and capital intensity.

This activity meets the guidelines for qualifying CPD, and has been accredited for continuing professional development by the Financial Advice Association of Australia but does not constitute FAA’s endorsement of the activity. 0.5hr CPD is available for this activity.