WSJ's Take On the Week Josh Brown’s ‘HALO’ Stocks Strategy: Investing in What AI Can’t Replicate
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May 3, 2026 
Josh Brown, CEO of Ritholtz Wealth Management and co-host of The Compound and Friends, outlines his 'HALO' idea in the age of AI. He explains why asset-heavy, low-obsolescence companies like Caterpillar, McDonald’s and Walmart may resist AI disruption. Short takes cover how this lens re-sorts winners and losers, which real-estate and incumbents qualify, and how investors might use HALO as a screening tool.
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Market Shift From Capital Light To Physical Assets
- Markets rotated from capital-light software winners to physical, capital-intensive firms as AI risks became evident.
- Josh Brown spotted semiconductors, utilities, and staples rallying together and linked it to investors fleeing companies vulnerable to large language model disruption.
How Scanning Weekly Winners Sparked The HALO Idea
- Josh Brown described his weekly process of scanning winners and losers and discovering an unprecedented pattern in 2024.
- He noticed semiconductors, utilities, and staples clustering among 52-week highs and traced it to AI-driven reallocation.
HALO Defined As AI Resistant Business Characteristics
- HALO stands for Heavy Assets, Low Obsolescence and identifies firms whose value can't be quickly replicated by AI.
- Examples include Caterpillar and Corning because their hardware, factories, or physical infrastructure form durable moats.