For a while, David Lam thought his groundbreaking product had flopped.
This was 1981. It was the early days of the home-computer boom, and the technology was moving fast.
Before this, computers existed as mainframes – big hulking giants that sat at universities and large corporations and were manned only by professionals. But in 1980, affordable models from Commodore and Apple suddenly meant every home could have a computer. In 1981, the IBM PC followed suit.
Rather than a few hundred or thousand mainframes spread across the country, technologists came to the realization that hundreds of thousands of smaller computers would soon blanket the U.S.
This revolutionary change in how we thought about computers and how they fit in our lives – going from specialized technology for immense organizations to something in every home – was about to create a huge, unexpected demand for semiconductors. And in the moment, the industry seemed unprepared to handle this crush of demand for computer chips.
In the '70s, semiconductor production was expensive and slow. Scientists had discovered a promising process for working with silicon wafers called "plasma etching." But it was clunky and error-prone.
David Lam sought to change that. Lam took the technology and improved it. He built a completely automated system that went with it. This sped up semiconductor production, removed human mistakes, and reduced error and failure rates.
It looked like a game-changer. Lam priced his machine at $160,000 versus the $35,000 to $50,000 that the competitors charged. But his confidence soon waned.
He sold a handful of units to start, but then... nothing. Months went by. No more orders came in. Lam called it a "major disappointment."
What Lam didn't realize was that this technology was such a big step forward that it took the first customers months to figure out just how productive it could be. (This has since been studied as a common phenomenon with new technology, in which the early adopters come quickly but the next stage of growth takes longer than you think. It's called "crossing the chasm.")
Folks may remember that, in the early '80s, the country was struggling through a recession. Technology companies were tightening their belts and reducing capital expenditures.
But the need for semiconductors grew, and Lam's machine worked. When the recession eased, Lam found himself inundated with orders.
Lam started selling his plasma etchers in Japan. And before long, he supplied Intel, National Semiconductor, and Advanced Micro Devices – the biggest firms in the industry.
Lam himself cashed out and left his company, Lam Research, decades ago. But it has since grown into a $105 billion behemoth, providing high-value equipment to an industry that spends tens of billions of dollars per year just to stay up to date with changing technology.
Today, the computing industry is in the middle of another technology revolution...
You can use artificial intelligence ("AI") to write essays and computer code, create art, solve complex math problems, and plan your vacation. AI even played a vital role in developing COVID-19 vaccines.
My friend and colleague Jeff Brown – founder of our corporate affiliate Brownstone Research – has seen all of the highs and lows of technology over the past several decades. As a Silicon Valley insider, he witnessed firsthand the dot-com bubble and subsequent bust, the disruption cryptocurrencies have caused, and how AI has changed the way we use computing technology.
Today, Jeff says that "thanks to a tiny California firm only the wealthiest investors know about, the next generation of AI will disrupt society all over again... but on a scale even bigger than the Internet, with five to 10 times greater earning potential. And this technology could upend the market in the process, even more than anything we've seen yet."
Folks know that I don't stake my wealth on speculations... But when you do want to shoot for big, life-changing gains, you'll do best when you've got an expert like Jeff to guide you.
On Wednesday, Jeff and Whitney Tilson – lead editor of Stansberry's Investment Advisory – detailed what they're calling "the investment opportunity of a decade."
If you missed their important webinar, you can catch the full replay here.
Now, let's get into this week's Q&A... And as always, keep sending your comments, questions, and topic suggestions to feedback@healthandwealthbulletin.com. My team and I read every e-mail.
Haggling Car Prices
Q: I am very curious as to where you can actually find a dealership that will haggle on price off the "sticker" price, or what your "real life" advice is on the negotiating aspect of car buying. I live in Minneapolis and dealers here haven't "haggled" in years. Walk in to almost any dealership in the Twin City metro area and you will be told that "We don't negotiate here. Our discounts are already included in the MSRP." Looking forward to your comments. – T.H.
A: This question is for the auto expert on our Health & Wealth Bulletin team... Brady Holt, who just wrote about how to "find your own 'best deal' on your next car." He'll field this one...
Thanks for writing, T.H. I've found that whatever the market environment, haggling for a car begins with some "opening number" – whether it's the sticker price, a markup from the sticker price (as we saw on many vehicles during the pandemic shortages), or a discount from the sticker price.
Other negotiable aspects of a deal include the terms of any trade-in vehicle, dealer-imposed fees or dealer-installed equipment, and financing rates if you're getting a car loan.
In many cases, the dealer's opening price is the "we hope someone will pay this" amount – which is just the start of a negotiation. In other cases, it's a sign to try another dealer.
How this negotiation goes will vary by dealer... by vehicle brand... by individual car model... and by individual vehicle in inventory. Maybe, for example, every 2025 Toyota RAV4 is selling at sticker price in the Twin Cities – but not necessarily every 2025 Ford Escape. Or maybe one Ford dealer is stuck with one Escape painted an unflattering color or missing a commonly desired amenity.
I also share a recommendation in my special report "How to Beat the Auto Market," available to Retirement Millionaire subscribers... (If you're not already a subscriber, click here for instant access to this report.)
Don't go into a dealership in person to begin the negotiation. Do it in writing from the comfort of home. You'll be able to talk to many dealerships at once... and use their quotes against each other. When you go into a dealership, the salesman's goal is to waste so much of your time that you'll give in and accept whatever he's offering.
When I helped my parents buy their latest car a couple years ago, I exchanged e-mails and text messages with a dozen different Kia dealerships across the Washington, D.C. area. Prices on identical vehicles ranged from a few hundred dollars under the sticker price to several thousand dollars above it.
And more to the point, it was a very low sticker price to start with – this is the biggest way that we found our own "best deal." As I wrote on Tuesday, what matters most is getting what you want for as little money as possible... not how much the dealer budged from the sticker price.
What We're Reading...
- Did you miss it? Investors are on a buying spree.
- Something different: The U.S. just had its first-ever solar storm preparedness drill.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
May 23, 2025
P.S. Our offices are closed for Memorial Day next Monday, May 26. Expect your next Health & Wealth Bulletin issue on Tuesday, May 27.
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