As someone who runs a quant hedge fund, I founded TruthSayer AI (together with three of my co-founders) with a vision to leverage the power of AI to help retail investors like you make more money and stay better informed about your investments.
For the first time in a generation, retail investors can leverage advanced Large Language Models (LLMs) and artificial intelligence to get better insights and trading strategies previously accessible only to professional and institutional investors. We have built TruthSayer AI from the ground up with tons of features from Financial Markets Insights to AI Trading Tools, previously only available to institutional investors.
One such feature is Hedge Fund Trading Insights AI.
A Common Mistake by Retail Investors
“Keep asking yourself questions about businesses you are invested in”
- Warren Buffett
A common mistake that most retail investors make is not asking the right questions about the businesses they are invested in.
At TruthSayer AI, we did a study where we asked retail investors to tell us about the questions they asked before making an investment.
Here is a sampling:
- “How does the historical performance of META compare to AAPL's performance?”
- “What's the 10 year return for META and GOOGL?”
- “What has AAPL returned on a 1, 3, 5, and 10 year basis?”
Is AAPL’s 10-year ROI relevant? Do you think Warren Buffett or his team asks these questions?
The answer is a definitive no!
Here is a sampling of questions the professionals ask:
- “What are the leading indicators of success for social media platforms like Instagram and Facebook, particularly in relation to demographic usage and engagement levels?”
- “How do you think the shift towards cloud-based devices, as seen with Google, is impacting the market penetration of smart cameras?”
- “How do the end-to-end suite offerings of Android and the more focused product lineup of Apple impact the overall user experience and consumer preferences for Apple devices?”
The difference is that while retail investors are concerned with the price of a stock, professional long-term investors look at the underlying business.
The TruthSayer AI Difference
With TruthSayer AI’s Hedge Fund Trading Insights AI, for the first time, retail investors can get answers to questions about the business of a company they are thinking about investing in, rather than some ROI or price question that is really easy to find and generally available to anyone.
The foundation, as Warren Buffett, says is to keep learning and asking questions about the business of the companies you would like to invest in. Just ask a question that comes to your mind about the underlying business of the stocks you want to invest in.
Know what you are investing in!
Another common mistake that many retail investors make is investing in things that they have no idea about. If you work as an IT guy or gal, then invest in tech companies, not retail. If you work at Walgreens, then invest in retail pharma not mining stocks. If you are an Apple household, then invest in Apple.
This is how long-short hedge funds invest. They have teams of analysts specializing in tech, and another team that focuses on retail. It's this specialization that helps Hedge Funds make money in markets.
My view is: Retail investors should also specialize. And the way to do that is having a core of your portfolio in sectors / industries you are very familiar with.