In this episode of From the Bottom Up, Jon Christensen, Portfolio Manager and Senior Research Analyst, and Sean Dixon, Research Analyst, discuss how AI is influencing the industrial sector and how we evaluate opportunity and risk in a rapidly evolving market. While new technologies continue to reshape industries, we remain focused on identifying businesses with durable competitive advantages, diversified end markets, and strong long-term fundamentals.
Durable Businesses Can Navigate Change
While AI is creating new opportunities across the economy, we believe many of the characteristics that define high-quality industrial businesses remain unchanged. Professional customers continue to value differentiated products, dependable service, and trusted relationships, which can help create resilient competitive positions even as technology evolves.
Participating in AI Without Relying on It
We are finding opportunities in businesses that can benefit from AI-related demand without becoming dependent on a single theme or customer group. Companies with diversified revenue streams and exposure to multiple end markets may be better positioned to participate in AI-driven growth while maintaining resilience through changing economic cycles.
Staying Disciplined Amid AI Enthusiasm
As AI reshapes market leadership, we continue to focus on competitive advantages, pricing power, and long-term business economics rather than chasing areas experiencing the strongest near-term momentum. In our view, periods of rapid change often reinforce the importance of quality, diversification, and a disciplined investment process.
Chapters:
0:00: How AI Is Changing Industrials
2:03: Participating in AI Without Relying on It
3:08: Diversification Across End Markets
5:07: Avoiding Disruption and Chasing Trends
6:17: Staying True to a Quality Investment Process
7:56: Aerospace and Defense Competitive Advantages
10:45: How Industrial Companies Are Adopting AI
13:03: Evaluating AI-Related Risks and Opportunities
16:08: Maintaining Discipline in a Rapidly Changing Market
Recorded on June 3, 2026
