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Single best idea, We'll be quick today. CPI report. Lots of good bank earnings as well. Secretary Bessett and conversation with John Farrell always interesting, particularly on tariffs. We had a really interesting and eclectic show. Barry Ridholds joined, of course out with his acclaimed book How Not To and Vast, and he went all Greek letters on us. He mentioned alpha in beta. There are different Greek letters that set up the dynamic of our time series moves. Beta is
your movement relative to a core index. If you have a beta under one, you're not as moving as the SPX, If you have a beta over one, you're moving more than the SPX. Standard ports five hundred elphas. Just making money here is Barry Ritholtz. I'm not losing money.
Stockpickers, other than the handful of the half a dozen people we all know, our household names tend to underperform a broad index. So you can't get alpha if you're not at least starting with beta. So if you want to make the core of your portfolio a broad index, and then you want to decorate that tree with specific
stocks or specific sectors knock yourself out. But to strictly focus on picking stocks and guaranteeing that, hey, maybe this year I'll out perform, maybe this year will underperform seems like an excessively risky strategy. Better to at least guarantee yourself what the market's going to give you. If you want to try and build on that.
Go ahead. I'll editorialize off that brilliance from Barry Ritholds. Another Greek letter's Theta. Theta is for the time change, and of course that's the X axis on any chart. The more out your investment is on theta, the less alpha you want to do. And what Berry's saying is on a four to oh one k figure out the index you like best, etc. Etc. And stick with it. There's a thing called our squared, which we don't talk
about in July. But the answer is get your basic investment in gear and then you can comfortably do Bolt lines mister Ridhold suggesting you'll find alpha with quality investments wrapped around that foundational beta support. I'm exhausted after all of that, never exhausted to talk to Gene Monster of deep Water Asset Management. There's a whole different change coming on AI. I've really noticed it just in the last say two months, a more nuanced discussion Monster an artificial intelligence.
It turns out that each of these models, with the exception of Lama, Lama is pretty weak. And so but if you look at the other four primary models, they all have kind of different strengths. And so ultimately, is that I think of AI as more of like a personality, is that the world isn't going to be centered on one personality. We won't want that, and so each of these models has a slightly different personality and slightly different strengths.
And so that's what we are seeing is if you're gonna say, what's like the best model kind of putting everything all together, it's probably open AI GPT today, and then Rock and Gemini kind of close behind.
Gene Monster there as we get to the technology season. He was a little cautious here on the opportunities for Microsoft. I think that was a surprise of the interview. Look for that interview in its entirety out at Bloomberg dot com, on our podcast, on Apple, on Spotify, and on YouTube podcasts. This is a single best idea