Recently we have seen massive increases in the deployment and use of AI.
From face recognition at airport's passport control, Netflix giving personal recommendations based on learned user preferences and Amazon's table top talking shopping list app. thingy!
(not to mention, the upcoming driver-less cars and mini electric aircraft/flying cars).
There is no doubt it will continue to grow exponentially and seamlessly play a part in many aspects of our lives.
Personally, I could also see it assisting in stock selection. Set your criteria e.g. income/growth, your risk appetite and investment time frame and see what recommendations it comes back with for you to down select and choose from, with push alerts along the way whilst holding. Automatic recommendation of further stocks which become fitting to the identified pattern as it learns what you like to invest your hard-earned in. We can all screen for various criteria at the moment, but isn't AI the natural progression?
After all, it started with Graham and Doddsville folk pouring over Moody's reams of company statistics, to find value and opportunity; to disks of data being sent, via subscription, to investors to load into their desktop applications; to today's online data and toolsets. The evolution continues.
On another track, how do we recognise good AI companies to invest in? How do we separate the good companies from the pure hype? how do we avoid the bubble stocks (like Tilray in legal pot). And, to further complicate, how do we know its not a great company underneath, but has been accidentally hijacked by a large band of hopeful and over-enthusiastic investors (private and institutional).
I'm thinking of writing a (say) monthly or quarterly article about this, sharing my own thoughts and and maybe a bit of AI company research. Just for kicks as it's a topic I'm interested in. Maybe its a topic of interest and could promote some exchange of ideas (or maybe not). Just thought I would put it out there?
Well, there is a good question, so thank you for it.
Amazon sells "stuff", so no specialist knowledge is required to figure out what they do, or even why their business is different to Woolworths.
Even then, I have missed the 1000 bagger Amazon opportunity, whilst also missing out on loads of other tech companies which have lost a fortune. [The unfashionable brewing companies added to my portfolio in 2000 did just fine]
Figuring out why AI is any different to plain software and who has a sustainable advantage looks difficult. Also, it's fashionable, so lots of other people will be looking into the field.
Joining in myself is entirely optional.
Then if we look back at history, about a century ago, there were hundreds of car makers. Only a few thrived and prospered. There were also many entrants into the new industry called aviation, but many airlines have failed and lost a lot of money. Incidentally, Warren Buffet has done well by avoiding airlines for about 80 years. Perhaps that business now looks better after consolidation in the US.
So making money in any new field such as AI field is not guaranteed. I think it's still necessary to exercise exceptional judgement.
The first question, would be is it worth the time to get to know the field properly, when we know there is a lot of hype in the sector ?
Or should something quieter & less fashionable be the priority ? Where I don't have to compete with some PhD in AI.
I'm open to being convinced.
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