Collection: Charlie Munger - #2 'Analysts/Portfolio Managers vs. A.I."


Video Link: https://youtu.be/tPQCF-z9bW8


In this episode, Charlie Munger was asked on what should the analysts/portfolio managers do to stay competitive with A.I. getting better at investing than humans?


In this episode, you’ll learn:

  • What is Charlie Munger recommendation for people in the investment management industry.

  • What is the common mantra in the investment management industry.

  • What is the problem in the investment management industry.

To check out all Collection: Charlie Munger <click here>

[Transcript]

AUDIENCE MEMBER 00:07

I had a question regarding investing, with computers and artificial intelligence rapidly getting better at investing than humans, what should analysts and portfolio managers in the investment management industry do to remain competitive?


Thank you.


CHARLIE MUNGER 00:23

Well, that’s a very good question.


I think what people in the investment management industry ought to do is prepare for tougher times ahead. I think this indexing thing is going to run and run and run.


And I think that there are wretched excesses in a lot of well-paid hedge fund and private equity businesses that will in due time result in a lot of troubles that give pain.


So, everywhere I see the endowment managers have the same mantra. They want fewer and better investment managers. That’s not gonna be good for investment managers and the rest of the people are indexing.


Now do you want any other cheery news? The cheery news is that if you think the way we nerds think and keep at it long enough, you’ll do all right. But if you go with this crowd, I think there’s pain ahead.

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