AI
There is no denying it, the current talk of the town, highlight of the headlines, and coffee shop conversations all revolve around the subject of Artificial Intelligence (AI).
People want to know what AI is and isn’t, how it impacts them personally, and what it all means for our economy and society. Some of these questions can be answered, and others will simply be answered over time.
The problem with a lot of these conversations is that people’s outlooks live at each of the extremes. On one side, you have opinions that AI is nothing more than a small evolution from traditional search to the other extreme that AI will soon put us all out of work. Yet, there is a place and posture where we can embrace this technology as a tool rather than a deity or enemy.
The question I find myself asking is, where does one find wisdom in a world full of artificial intelligence?
Wisdom is not innovative, but rather ageless and immortal. I believe it is a suitable time to slow down and rest on some ageless wisdom to help drown out some of the noise going on right now. Today I will share three truth tidbits with the hope that these reminders and encouragements will help to make us all better investors.
Off we go…
Temperament > IQ
Two of your greatest enemies when it comes to investing are fear and FOMO. These two adversaries are going to tug at the core of your being – your emotions – and cloud your decision making.
Sure, IQ is important, but absent of EQ it becomes useless in the world of investing. An image of an untamed fire hose or a wild mustang should come to mind – power without control.
Folks are excited about the access and speed of information that comes with artificial intelligence, but all the information in the world doesn’t solve for lizard brain behavior and those emotional instincts that can cause so much financial damage.
Warren Buffett said it this way, “Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.”
Contrarian + Right
My seven-year-old son is at an age where he likes to challenge me on everything. Regardless of his knowledge or experience, he responds, “That’s not right, dad.” I was annoyed for a bit, but now I just laugh it off. I admire his confidence, and I am humored by his ignorance. From where to find a pair of socks to directions to grandma’s house he has many contrarian opinions.
As an investor, we must choose whether we want to have a consensus opinion or a contrarian opinion on an array of different topics. Some investors, like my seven-year-old, are wired to always go against the herd.
I heard an interview once with the famed investor, Howard Marks, and what he said has always stuck with me. He said it isn’t enough to just be contrarian, but to make money you have to be contrarian and you have to be right.
We know this is true because when a stock or investment becomes unloved, the price goes down. If you have a contrarian view – grounded in a reasonable and thoughtful thesis – that the current price is below fair value, then you’ve just found yourself an attractive investment. This concept is at the heart of dividend growth investing – great companies at good prices.
Both/And
Each year The Bahnsen Group has a company theme. A mantra of sorts, to help remind us of an initiative, mindset, or philosophy to fuel us through the year. The 2026 theme is “both/and.”
I used to have a boss that would constantly tell me, “It’s not this or that, but rather this and that.” We have this tendency to create these false dichotomies, a fictitious fork in the road. This idea is that if we give attention to one, we must ignore the other. I believe excellence lives in the land of both/and. That our company would aspire to excellence in the field of investment management and financial planning. That we would grow in headcount and number while also keeping a small familial culture.
It’s not easy, but it’s not impossible. It’s the type of challenge that should excite you.
Many years ago, I read the book Deep Thinking by the famed chess master, Gary Kasparov. The book recounts the famous chess match between Kasparov and the IBM supercomputer, Deep Blue. Spoiler alert, the supercomputer wins. Yet, Kasparov’s conclusion and advocation is not for machine over man, but what he touts as the most powerful combination: machine plus man. That these two – man and machine – need not be at confrontation with one another, but that the real power lies in the collaboration.
Personally, I am viewing and approaching artificial intelligence with this same paradigm. Humbly learning how to use the tools, retaining the wisdom that I know is so crucial to my career, and finding the intersection of where tool and wisdom can improve my craftsmanship. It’s a both/and.
Wisdom is Timeless
In a world of innovation, excitement, and exploration it’s important to remember that wisdom is timeless. Yes, the technology is different today than yesterday, but the main character of the story remains the same: humans.
I would encourage you to avoid the extreme opinions on AI – from insignificance to apocalypse. See AI as a tool, and a tool that should be coupled with wisdom to result in overall improvement in whatever the endeavor.
Today I shared a few quotes and tidbits, but obviously wisdom is much more expensive than that. The hope here is that wisdom has an incremental element to it – today’s truths should add to the building blocks that you’ve laid in the past and will be a foundation to those that you lay in the future.
As always, please reach out with any and all comments or questions.
Until next time, friends…
