“Knowledge is power.” -Francis Bacon
“To know that we know what we know, and to know that we do not know what we do not know, that is true knowledge.” -Nicolaus Copernicus
“Be a lifelong student. The more you learn, the more you earn and the more self-confidence you will have.” -Brian Tracy
“Risk comes from not knowing what you’re doing.” -Warren Buffett
Over the last couple of centuries, amazing things have been learned. Acquired knowledge was built upon to bring us to where we are today.
In an article titled, “The Privilege of Knowledge” by Nick Maggiulli, he writes, “When George Washington died in 1799, he didn’t know about dinosaurs. In fact, no one did. It wasn’t until 1841 when Richard Owen, a rising star in paleontology, coined the term dinosauria, meaning ‘terrible lizard’ that dinosaurs began to enter the mainstream.”
He goes on to remind us of all the things we do on a daily basis that happen because of discoveries from the last two centuries.
- Waking up to an alarm clock. With the creation of Eastern Standard Time (EST) in late 1883, clocks were standardized across the country.
- Taking a shower to stay clean and prevent the spread of germs. In the early 1800s, Agostino Bassi proved germs could cause diseases.
- Keeping food in a refrigerator. The year 1913 saw the invention of the first refrigerator for home use.
If you’ve lived 20 years or more than 80, you’ve noticed what has changed during your lifetime. People gain knowledge and invent things or make changes.
Has The Investing World Changed?
Maggiulli explains that while “buy and hold is obvious now because of hindsight, ubiquitous data, and modern computational resources,” it wasn’t before.
For example, from 1871–1940, the US stock market grew at a rate of 6.8 percent a year (adjusted for dividends and inflation). But no one would have known this data. It wasn’t compiled until 1989!
“So what did investors in 1940 rely on when making investment decisions?” asks Maggiulli. “Mostly narratives and emotions. Most of them remembered the market trauma of the 1930s as highlighted in the incredible book The Great Depression: A Diary by Benjamin Roth.”
He notes it’s market fantasy if you look at data from 50 years ago and say, “If you had bought X…” because, “The investment world has changed so much in the last half century that many historical comparisons are useless.”
Investment Knowledge: A Blessing or a Curse
He sums up his article by writing, “Remember, investing is a game that is based on the preferences and information of other participants. If the other participants have learned things from market history…, then your job as an investor didn’t get any easier though you have more knowledge.”
What you do with your knowledge determines whether it’s a blessing or a curse.
Knowledge and the Advantage of AI
Kelly Korshak went to Stanford at age 16, ultimately earning advanced degrees in mathematics, statistics and finance. He then went to work on Wall Street managing billions of dollars manually with his mathematical algorithms.
He left Wall Street and founded iFlip. His math knowledge is able to predict the likely future behavior of the stock market. It’s his knowledge that has created the Algorithmic Intelligence (AI) used in the first ever, truly AI-driven portfolio, the SmartFolio.
SmartFolios are part of mobile stock trading and available in the best mobile stock app.
AI only exists if the machine or algorithm has the ability to change its own rules. And do it without human interference. If it’s just smart technology, programmed by a human, that’s good stuff. But it’s not AI.
iFlip’s AI isn’t robo trading, a robo financial advisor or a robo investment advisor. iFlip has the first truly AI-driven customer investment vehicle on the market. Whether you have $200 or $2 Million to invest, iFlip’s AI can help you produce more money with less risk.
AI Will Beat Humans Every Time
AI doesn’t have an opinion. It only cares about the mathematics behind the stocks. That’s it.
Use the knowledge that makes iFlip’s AI the most effective and highly efficient mechanism for the average person to invest in the stock market. See how it can work for you at iFlip.