| Areté Quarterly Q4 25 |
Business update
There probably wasn't a bigger story than AI (artificial intelligence) last year but where the story mostly failed was in regard to providing tangible benefits to businesses. That was not the case with Areté, however, as the year started with some regular experimentation, and ended with AI functionality increasingly seeping into workflows.
Initially, the benefits were sort of odd one-offs that were useful, but not transformative. For example, I could create bespoke graphics for articles that I used to pay a graphic designer for. AI is also great for tech support -- which can be a huge time sink for a small business person.
In the last several months, I have increasingly incorporated AI tools into my thought process. This started with simpler things like simple clarifications; some technical experts aren't so great at writing or making their point. It also helped me work through slang, playful (though sometimes incomprehensible) word play, and terms and ideas that are specific to certain knowledge domains. In short, it made a lot valuable insights a lot more accessible.
I also found that AI allowed me to cast a far wider net for useful bits of information. I had relied on social media to do a lot of that, but I also determined over last year that it was no longer worth the effort -- too much toxicity for too little genuine insight. Besides, AI tools cast the net even wider and frequently highlight things like public speeches and pronouncements which can be extremely important but often don’t make the news headlines.
Increasingly I have also been using AI to tease out arguments. Sometimes two different strategists, both of whom I respect, have opposing views on an issue. It's often useful to use AI to dig into the arguments in order to find why they differ. I have experienced situations where modest signals in the language or structure of the argument reveal differing assumptions. This is extremely useful to know.
I also like to use AI to challenge theses and hypotheses. I pride myself on being fairly creative and open-minded in trying to understand unusual paradoxes and enigmas. Subjecting such ideas to AI interrogation reveals their strengths and weaknesses so I can investigate further. This helps me ensure the objectivity of my own arguments as well as those of others. It also helps to attenuate some of my more crackpot theories ;-)
In addition, one of the precepts of my investment philosophy is that it is important to view things from multiple perspectives in order to achieve a more comprehensive understanding. AI is a wonderful tool for synthesizing many different perspectives.
Relatedly, one of the bigger challenges of analysis is disentangling insights from narratives. Since nearly everyone is trying to "sell" their analysis to an audience, they almost always do so by packaging it in the form of a narrative. AI provides the functionality that can help strip away the story from the thesis.
A couple of key points stand out from my experience with AI so far. One is that the tools that exist today are extremely useful without any consideration of AGI (artificial general intelligence). It’s not necessary to dream the impossible dream to consider AI helpful.
Another is that AI provides the kind of support for small, scrappy, resourceful business people that they could only dream about in the past. This creates a big opportunity for talented individuals to punch way above their weight.
Finally, I'm a curious guy and I am always asking questions. Having the ability to get really good answers the vast majority of the time, without hundreds and hundreds of costly subscriptions, is really fun, and really stimulating.
If you have any questions about what I do or just want to learn more about the All-Terrain strategy, please reach me at [email protected]. I look forward to it!
Thanks for your support!
David Robertson, CFA
CEO and founder, Areté Asset Management
There probably wasn't a bigger story than AI (artificial intelligence) last year but where the story mostly failed was in regard to providing tangible benefits to businesses. That was not the case with Areté, however, as the year started with some regular experimentation, and ended with AI functionality increasingly seeping into workflows.
Initially, the benefits were sort of odd one-offs that were useful, but not transformative. For example, I could create bespoke graphics for articles that I used to pay a graphic designer for. AI is also great for tech support -- which can be a huge time sink for a small business person.
In the last several months, I have increasingly incorporated AI tools into my thought process. This started with simpler things like simple clarifications; some technical experts aren't so great at writing or making their point. It also helped me work through slang, playful (though sometimes incomprehensible) word play, and terms and ideas that are specific to certain knowledge domains. In short, it made a lot valuable insights a lot more accessible.
I also found that AI allowed me to cast a far wider net for useful bits of information. I had relied on social media to do a lot of that, but I also determined over last year that it was no longer worth the effort -- too much toxicity for too little genuine insight. Besides, AI tools cast the net even wider and frequently highlight things like public speeches and pronouncements which can be extremely important but often don’t make the news headlines.
Increasingly I have also been using AI to tease out arguments. Sometimes two different strategists, both of whom I respect, have opposing views on an issue. It's often useful to use AI to dig into the arguments in order to find why they differ. I have experienced situations where modest signals in the language or structure of the argument reveal differing assumptions. This is extremely useful to know.
I also like to use AI to challenge theses and hypotheses. I pride myself on being fairly creative and open-minded in trying to understand unusual paradoxes and enigmas. Subjecting such ideas to AI interrogation reveals their strengths and weaknesses so I can investigate further. This helps me ensure the objectivity of my own arguments as well as those of others. It also helps to attenuate some of my more crackpot theories ;-)
In addition, one of the precepts of my investment philosophy is that it is important to view things from multiple perspectives in order to achieve a more comprehensive understanding. AI is a wonderful tool for synthesizing many different perspectives.
Relatedly, one of the bigger challenges of analysis is disentangling insights from narratives. Since nearly everyone is trying to "sell" their analysis to an audience, they almost always do so by packaging it in the form of a narrative. AI provides the functionality that can help strip away the story from the thesis.
A couple of key points stand out from my experience with AI so far. One is that the tools that exist today are extremely useful without any consideration of AGI (artificial general intelligence). It’s not necessary to dream the impossible dream to consider AI helpful.
Another is that AI provides the kind of support for small, scrappy, resourceful business people that they could only dream about in the past. This creates a big opportunity for talented individuals to punch way above their weight.
Finally, I'm a curious guy and I am always asking questions. Having the ability to get really good answers the vast majority of the time, without hundreds and hundreds of costly subscriptions, is really fun, and really stimulating.
If you have any questions about what I do or just want to learn more about the All-Terrain strategy, please reach me at [email protected]. I look forward to it!
Thanks for your support!
David Robertson, CFA
CEO and founder, Areté Asset Management
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