New AI Stock Pickers Are Destined to Disappoint: Nir Kaissar

The video discusses the challenges and potential of AI in stock picking. It highlights that AI faces hurdles such as market fees, lack of track record, and the need to offer something novel beyond index funds. While AI could potentially improve market efficiency, investors face difficulties in choosing the right AI without a track record. The video suggests that AI could help maintain market efficiency, allowing more people to invest in index funds without worrying about mispricing.

What is one of the main reasons AI cannot outperform the market in aggregate?

• AI lacks the necessary data.

• AI is not widely accepted by investors.

• AI systems are too slow.

• AI incurs fees that reduce returns.

Why might AI stock pickers be more expensive than traditional index funds?

• They have a longer track record.

• They require more human oversight.

• They are less efficient in processing data.

• They use advanced algorithms that incur higher costs.

What challenge do investors face when selecting AI stock pickers?

• AI systems are too cheap.

• AI stock pickers have no track record.

• AI systems are too transparent.

• AI stock pickers are too predictable.

How might AI contribute to market efficiency?

• By performing the role of active managers in pricing stocks.

• By eliminating the need for stock exchanges.

• By increasing the number of index funds.

• By reducing the number of active managers.

What is a potential benefit of AI in the context of index investing?

• AI can replace all human investors.

• AI can ensure market prices remain efficient.

• AI can eliminate all investment risks.

• AI can guarantee higher returns than index funds.