Hi Michael,
Are you mentioning the Byron Bay to make everyone jealous, and well done on having a focus on continual learning.
We like yourselves believe AI will be huge moving forward but like all new technology/themes early adopters aren’t always the long term winners, not that long ago, Shawn used a pager, and a Blackberry for trading which have all basically gone the way of the Dodo, as iPhones now dominate.
Firstly, we think AI is akin to the next industrial revolution, it will change everything and we must embrace it, or be left behind. We are only fairly new to using AI and at this stage, we are using it in security analysis, deciphering transcripts, pulling pertinent aspects out of regulatory documents and some overlays to our writing. The issue for us at the moment, is that we’re very timely in our reports, discussing whats playing out today and our views around that, and while it’s useful for historical aspects, the hear and now is more challenging, and of course, we sell our opinions and our actions and MM, and AI can’t formulate them for us, but it does play a part in their evolution.
There was a question above on what financial metrics to use when assessing a company and this is a good example of how those sorts of questions can be answered quickly using AI i.e. Asking Chat GPT….
What is the best financial metric to use when assessing APA Group (APA);
Since APA operates in the infrastructure and utilities sector, certain metrics are more relevant than others. Below are the best financial metrics to consider when analyzing APA Group. EV/EBITDA is a commonly used valuation metric in infrastructure and utilities companies like APA. It provides a measure of……
RE Commonwealth Bank: We’ve written a lot in the past about CBA’s consistent and ongoing investment in technology. They are obviously the biggest and can spend more on technology than the others. This has given the best ‘tech stack’ of any bank – from memory they spend something like $1.4bn annually on technology against Bank of QLD which is ~$160m or there abouts. That consistent investment over time has delivered them a great foundation to drive more efficiency through AI. Banking, as you elude to, is a big volume, low margin business. By improving margins slightly, that can have a huge influence on earnings, and there is no doubt this is playing into their sector leading performance.
