Jim O'Shaughnessy on AI, ventures, publishing, markets and his new book Two Thoughts | V:AH S07 E02
Jan 20, 2025
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Jim O'Shaughnessy, an investor and entrepreneur known for his quantitative value investing expertise, dives into an array of fascinating topics. He examines the revolutionary impact of AI in ventures and the gaming industry, particularly through the lens of the game Go. O'Shaughnessy highlights the power of optimism and innovation, referencing historical bets that showcase human ingenuity. He also discusses curating literature to influence AI's outlook, while emphasizing the intersection of finance history and tech advancements in shaping the future of investing.
AI's evolution in gaming, exemplified by AlphaGo's learning approach, showcases its capacity for discovering strategies beyond human capabilities.
The distinct cognitive processes of AI present unique opportunities and challenges in investing, highlighting the value of collaboration between AI and human decision-makers.
AI's potential to revolutionize publishing by streamlining workflow enhances the author experience and transforms the accessibility of content in the market.
Deep dives
The Evolution of AI in Games
AI has undergone a significant transformation, particularly evident in its application to games like Go. Unlike chess, where computer Deep Blue relied on sheer brute force computing every possible move, AlphaGo introduced a new approach by simply teaching the AI the basic rules of Go. Following this, AlphaGo played millions of games against itself, a process that allowed it to discover strategies beyond human capabilities, eventually defeating top human players. This illustrates how AI's capacity for learning from experience rather than just relying on historical data fundamentally reshapes our understanding of intelligence.
AI's Unique Cognitive Approach
The cognitive processes of AI differ markedly from human reasoning, which can create both challenges and opportunities in various fields, including investing. AI's lack of inherent emotions and its ability to disregard time constraints allow it to explore strategies that a human player may never consider. This alien-like nature of AI encourages collaboration, as it can suggest innovative approaches based on its unique algorithmic calculations. Embracing this collaboration could lead to insights that enhance decision-making and opening up new avenues for human-AI partnership.
The Future of Innovation with AI
The potential for AI to revolutionize industries is immense, prompting discussions about its comparison to historical technological shifts, such as the printing press. While concerns about the implications of AI abound, the emphasis is placed on the new capabilities and opportunities AI technology brings. By harnessing AI, organizations can push boundaries, innovate faster, and find creative solutions that were previously inconceivable. As these technologies evolve, they hold the promise of shaping a future filled with unparalleled advancements across multiple sectors.
Navigating Investment Challenges
Investment landscapes often present complex problems that require both convergent and divergent thinking. Understanding this distinction is crucial for investors, as many financial dilemmas are not purely technical but rather involve nuanced human values and ethical considerations. For instance, the balance of trust and skepticism in investing can lead to significant investment decisions that rely on human intuition rather than mere calculation. Recognizing the need for a flexible approach allows investors to embrace paradoxes, leading to a better understanding of market dynamics and more informed decision-making.
The Transformation of Publishing with AI
AI is set to transform industries such as publishing by streamlining processes that have traditionally burdened authors. The introduction of AI can considerably reduce the waiting time for manuscript reviews and revisions, enhancing the overall author experience. This shift towards efficiency not only benefits authors but also contributes to creating a more responsive marketplace for books. As AI technologies continue to evolve, they are likely to redefine the standards of publishing, offering authors and readers unprecedented access to diverse content and innovative ideas.
Value: After Hours is a podcast about value investing, Fintwit, and all things finance and investment by investors Tobias Carlisle, and Jake Taylor. See our latest episodes at https://acquirersmultiple.com/podcast
We are live every Tuesday at 1.30pm E / 10.30am P.
About Jake
Jake's Twitter: https://twitter.com/farnamjake1
Jake's book: The Rebel Allocator https://amzn.to/2sgip3l
ABOUT THE PODCAST
Hi, I'm Tobias Carlisle. I launched The Acquirers Podcast to discuss the process of finding undervalued stocks, deep value investing, hedge funds, activism, buyouts, and special situations.
We uncover the tactics and strategies for finding good investments, managing risk, dealing with bad luck, and maximizing success.
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ABOUT TOBIAS CARLISLE
Tobias Carlisle is the founder of The Acquirer’s Multiple®, and Acquirers Funds®.
He is best known as the author of the #1 new release in Amazon’s Business and Finance The Acquirer’s Multiple: How the Billionaire Contrarians of Deep Value Beat the Market, the Amazon best-sellers Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014) (https://amzn.to/2VwvAGF), Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012) (https://amzn.to/2SDDxrN), and Concentrated Investing: Strategies of the World’s Greatest Concentrated Value Investors (2016) (https://amzn.to/2SEEjVn). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law.
Prior to founding the forerunner to Acquirers Funds in 2010, Tobias was an analyst at an activist hedge fund, general counsel of a company listed on the Australian Stock Exchange, and a corporate advisory lawyer. As a lawyer specializing in mergers and acquisitions he has advised on transactions across a variety of industries in the United States, the United Kingdom, China, Australia, Singapore, Bermuda, Papua New Guinea, New Zealand, and Guam.
He is a graduate of the University of Queensland in Australia with degrees in Law (2001) and Business (Management) (1999).
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