Is AI Making Investors Dumber? | Michael Fritzell

Join MicroCapClub and unlock the ability to listen and participate live in these conversations.

Michael Fritzell writes Asian Century Stocks, a research service covering undercovered equities across Asia. He spent sixteen years on the buy side in Hong Kong, Singapore and Indonesia before leaving in 2021 to publish full time, and now writes deep dives on companies that receive almost no analyst coverage.

In this conversation, Michael explains how he uses generative AI in his research process: the saved prompts he runs on any new ticker, including a bull-versus-bear project and one built to surface red flags in the accounts, and where he refuses to use these tools at all, namely calculations and writing. He also talks about where he finds ideas that AI can't commoditize, mainly insider transaction data and broken IPOs in Asia, and why he shifted from buying low P/E stocks to targeting a prospective IRR and selling once it falls below his cost of capital. He argues that faster research doesn't automatically mean better returns, which leads to the question of why an investor would cover two hundred stocks a year instead of twenty.

You can listen/watch this conversation on Spotify, Apple, and YouTube below:

_{Disclaimer: All content in this newsletter is for discussion, education, entertainment, and illustrative purposes only and SHOULD NOT be construed as professional financial advice, solicitation, or recommendation to buy or sell any securities, notwithstanding anything stated on this newsletter and MicroCapClub.com. There are risks associated with investing in securities. Loss of principal is possible. Past performance is not a predictor of future investment performance. Ian Cassel and MicroCapClub.com are not responsible for investment actions taken by viewers. Should you need such advice, consult a licensed financial advisor, legal advisor, or tax advisor. You agree to verify all information yourself before investing. Any past performance discussed on MicroCapClub.com is no guarantee of future results. Investing involves risk and possible loss of principal capital; please seek advice from a licensed professional. All views expressed are personal opinions as of the date of publication and are subject to change without the responsibility to update views. No guarantee is given regarding the accuracy of the information. FULL DISCLAIMER and TERMS OF USE}