In this solo episode of Yet Another Value Podcast, host Andrew Walker introduces and unpacks his evolving investment concept: the Theory of Weird Markets. Andrew uses analogies from sports, AI, and Rubik’s Cube competitions to argue that traditional strategies in investing are increasingly obsolete. Instead, he suggests that in an age dominated by quant funds, AI, and machine learning, alpha lies at the edges—in unique, weird, or "N of 1" investment opportunities. This episode is part rough-draft, part invitation, as Andrew seeks listener feedback to refine the theory that will underpin much of his investing outlook for 2026.
____________________________________________________
[00:00:00] Introduction and sponsor mention
[00:02:02] Overview of episode structure
[00:03:08] Theory of Weird Markets explained
[00:05:17] Stock market as ultimate competition
[00:09:09] Sports performance evolution examples
[00:10:00] Rubik’s Cube as improvement analogy
[00:13:11] Incentives in Rubik’s vs. investing
[00:15:09] Finance history proves competition
[00:17:30] Counterintuitive strategies dominate at scale
[00:18:42] AI and chess: new strategy insights
[00:20:00] AI poker strategy looks irrational
[00:21:16] Humans must embrace “weird” edge
[00:22:56] AI fails with unexpected variables
[00:23:26] Power demand as under-modeled opportunity
[00:24:35] Spinoffs and unique events as alpha
[00:25:28] Warner Bros. Discovery case study
[00:26:26] Management incentives and market edges
[00:27:10] Writer’s block and theory reflection
[00:28:21] Call for feedback and discussion
Links:
Yet Another Value Blog - https://www.yetanothervalueblog.com
See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer
Production and editing by The Podcast Consultant - https://thepodcastconsultant.com/
