The current price of these companies is already determined by cutthroat competition between hyper-informed investors. If Warren Buffett or Goldman Sachs thinks the market is undervaluing these AI companies, then they’ll spend billions bidding up the stock price until they’re no longer undervalued.
That sounds like a nice world, but unfortunately I don’t think that the market is quite that efficient. (Like the parent, I’m not going to offer any evidence, just express my view.)
You could reply, “then why ain’cha rich?” but it doesn’t really work quantitatively for mispricings that would take 10+ years to correct. You could instead ask “then why ain’cha several times richer than you otherwise would be?” but lots of people are in fact several times richer than they otherwise would be after a lifetime of investment. It’s not anything mind-blowing or even obvious to an external observer.
“Don’t try to beat the market” still seems like a good heuristic, I just think this level of confidence in the financial system is misplaced and “hyper-informed” in particular is really overstating it. (As is “incredibly high prior” elsewhere.)
(ETA: I also agree that if you think you have a special insight about AI, there are likely to be better things to do with it.)
That sounds like a nice world, but unfortunately I don’t think that the market is quite that efficient. (Like the parent, I’m not going to offer any evidence, just express my view.)
You could reply, “then why ain’cha rich?” but it doesn’t really work quantitatively for mispricings that would take 10+ years to correct. You could instead ask “then why ain’cha several times richer than you otherwise would be?” but lots of people are in fact several times richer than they otherwise would be after a lifetime of investment. It’s not anything mind-blowing or even obvious to an external observer.
“Don’t try to beat the market” still seems like a good heuristic, I just think this level of confidence in the financial system is misplaced and “hyper-informed” in particular is really overstating it. (As is “incredibly high prior” elsewhere.)
(ETA: I also agree that if you think you have a special insight about AI, there are likely to be better things to do with it.)