My AI bot the other day accused me of having something called mechanism thinking. What it meant by that is I am not satisfied when presented with an idea. I have to take that idea, tear it apart, and understand how it came to be.
I had this thought because I was replying to a person on Reddit about the term priced in. On investing forums and in discussions it has become a suddenly very widely used term. It is thanks to AI and in the weird way only a non-sentient entity can make assumptions the AI made an assumption about people and marketplaces.
What’s better than saying that all information and potential futures are priced into a stock price it is better to ask what is reflected by that stock price. AI ended up making the assumption that all information is reflected because it can quickly and easily grab the information. It knows the balance sheet for the companies and all publicly available information on future plans.
Most investors don’t work this way. They buy a stock because they like the company or cousin Frankie mentioned it at the BBQ or @BigFarts26 said it was going to the moon on X. I would say between 1-5% of investors truly know everything going on with a company and as we proceed down the ladder of information we find that not a lot of investors have even bothered looking at a company balance sheet (including me).
Back to the mechanical thinking. The AI said my wanting to know where ideas come from is a reflection of this. It also makes me wonder about the systems thinking. That is described as wanting to understand what the impact of one system on another would be. How systems fit together and influence each other.
Then there is my own assumptions about thought patterns. Doesn’t everyone think like this? I do not consider myself to be anything more than of average intelligence and it is this belief that sometimes holds me back. I will watch some incredibly dumb people do things like become business coaches and then I start wondering why can’t I do it and then get afraid of giving someone bad advice.
It is like the investment YouTube channel I thought of starting. I really should even if it is terrible. We have to be terrible to get to good.
