Masters in Business Jim O'Shaughnessy on How AI Will Change Everything From Arts to Stocks
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May 9, 2024 Jim O'Shaughnessy, an investing expert, discusses the evolution from manual to quantitative investing, success stories from OSAM, values-based investing, challenges in financial modeling, the AI revolution in filmmaking, and empowering global geniuses through fellowship programs. He explores the transformative potential of AI, the importance of data quality, and the human element in quantitative decision making.
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IBM Dinner Table Argument
- Jim O'Shaughnessy's interest in markets stemmed from a dinner table argument between his father and uncle about IBM.
- He questioned their subjective reasoning and suggested looking at the company's financial performance instead.
Low P/E Outperformance
- O'Shaughnessy's early research on the Dow 30 revealed that buying low P/E stocks outperformed high P/E stocks.
- This discovery, combined with the advent of computers, led him to write "What Works on Wall Street."
Bear Stearns SMA Platform
- At Bear Stearns, O'Shaughnessy developed a separately managed account platform for brokers.
- This platform provided a systematic approach to investing and offered a clear rationale for portfolio construction.