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How to earn a 30% compounded annual return. Using the new AI to predict the stockmarket? Or helping every industry (including yours)

This is Jean-Michel Basquiat’s most famous painting:

On May 18, 2017, the New York Times reported:

In 1984, Jean-Michel Basquiat sold his painting “Untitled” (the one above) for $19,000. Just moments ago, that same painting sold for an astonishing $110 million dollars at Sotheby’s auction of contemporary art. That is a record price for an American artist at auction and the sixth most expensive work ever sold at auction.

I figured it. That’s an astonishing 30% compound annual growth. That’s better than Warren Buffett. who achieved a compounded annual growth of “only” 19.8% between 1965 and 2022.

This gets better. Yesterday’s New York Times reported:

Auctioneer Admits to Helping Create Fake Works Shown as Basquiats in Orlando
The man has agreed to plead guilty to a charge of lying to federal agents who say he helped to create the works displayed and later seized at the Orlando Museum of Art.

In the article, the creator of the fake Basquiats “spent as little as five minutes and no more than 30 minutes” creating each of the fakes, which the director of the Orlando Museum of Art said were real. “My reputation is at stake here.”

For the wonderful New York Times piece, click here.

Here’s what you can earn on CDs and treasuries

It’s weird. The Fed is rising interest rates to temper the economy and bring down inflation. What’s happening is that short-term rates are rising, but not long-term ones. I have been buying 3, 6, 9 month and one year treasuries. The weird thing about CDs is that they’re offered by banks — but not on their savings accounts. You gotta ask.

5% on treasuries is a good place to hide while the stockmarket deals with uncertainty and slowing corporate earnings.

Suddenly ChatGPT / generative AI is getting ink

It’s everywhere. I don’t have a friend who’s not messing with it. I asked Chat GPT:

Can you write me a short article on the benefits generative Ai will offer us all in coming years?

It answered:

“Generative AI, which involves using algorithms and machine learning to create new data, has the potential to revolutionize many industries in the coming years. Here are just a few ways that generative AI is likely to benefit us all:

  1. Creative Industries: Generative AI has the potential to completely transform creative industries like music, art, and writing. With generative AI, artists and writers can create new, original content quickly and easily, freeing up their time to focus on other aspects of their work.
  2. Healthcare: Generative AI can be used to develop more effective drugs and treatment plans, improving patient outcomes and saving lives. It can also be used to analyze medical data and develop personalized treatment plans for patients based on their individual needs.
  3. Manufacturing: Generative AI can be used to optimize manufacturing processes, improving efficiency and reducing waste. This can lead to cost savings for manufacturers and lower prices for consumers.
  4. Customer Service: Generative AI can be used to create chatbots and virtual assistants that can handle customer inquiries and provide personalized recommendations. This can improve the customer experience and free up customer service representatives to handle more complex issues.
  5. Cybersecurity: Generative AI can be used to detect and prevent cyber attacks, improving security for individuals and organizations. It can also be used to identify vulnerabilities in computer systems and develop more effective security measures.
  6. Transportation: Generative AI can be used to optimize transportation routes, reducing congestion and improving fuel efficiency. It can also be used to develop autonomous vehicles that can reduce the number of accidents on the road.

These are just a few examples of the many ways that generative AI is likely to benefit us in the coming years. As the technology continues to advance, we can expect to see even more innovative applications and solutions emerge.”

CNBC has a piece saying “TECHChatGPT may be able to predict stock movements, finance professor shows.”

For the CNBC  piece, click here.

Goldman Sachs has two excellent papers:

+ Generative AI — Part I: Laying Out the Investment Framework. Click GS AI-1

+ Americas Technology: Software: Generative AI — Part II.  Private Company Conference Takeaways. Click here.GS-AI-2

AIR is a wonderful movie

In it Sonny Vaccaro (played by Matt Damon) delivers the best sales pitch I’ve ever heard. He’s pitching the Jordan family on working with Nike. I can’t find the speech on YouTube. But I did find a neat interview with Damon:

Am I too old for these?

I’m totally fascinated by this sales pitch. There are men who respond to this?

Red clay tennis in Monte Carlo

They’re playing tennis in Monte Carlo. It’s on the Tennis Channel.

I get back on the court on April 30. I can’t wait.

See you. — Harry Newton