Live data from Hacker News

Perplexity AI's new tool for researching the stock market

zdnet.com

11–20 of 45 posts

Re: Perplexity AI's new tool for researching the stock market

#11

Speaking as a former M&A financial advisor and valuation nerd, historical financial data is very close to worthless for any valuation work, except perhaps for vaguely connecting the dots to your proprietary, forward looking financial model which is based on a deep understanding of a particular company and industry. This reads to me like garbage in, garbage out... just like 99.9999% of current resources on financial d…

[deleted]

Re: Perplexity AI's new tool for researching the stock market

#13

Speaking as a former M&A financial advisor and valuation nerd, historical financial data is very close to worthless for any valuation work, except perhaps for vaguely connecting the dots to your proprietary, forward looking financial model which is based on a deep understanding of a particular company and industry. This reads to me like garbage in, garbage out... just like 99.9999% of current resources on financial d…

That's a lot of "this won't work" without very much "here's what does work" leading me to conclude this is bluster and ego.

I always hear these finance people dick waving about how crap everyone else's methodologies are without examples of their own. This leads me to conclude it's all snake oil anyway.

So I'm asking, speaking as a former M&A financial advisor... What _does_ work?

Re: Perplexity AI's new tool for researching the stock market

#14

Speaking as a former M&A financial advisor and valuation nerd, historical financial data is very close to worthless for any valuation work, except perhaps for vaguely connecting the dots to your proprietary, forward looking financial model which is based on a deep understanding of a particular company and industry. This reads to me like garbage in, garbage out... just like 99.9999% of current resources on financial d…

That's a lot of "this won't work" without very much "here's what does work" leading me to conclude this is bluster and ego. I always hear these finance people dick waving about how crap everyone else's methodologies are without examples of their own. This leads me to conclude it's all snake oil anyway. So I'm asking, speaking as a former M&A financial advisor... What _does_ work?

nothing. There is no way to predict the stock market. Even the way you're probably thinking of. Even the ones in the replies to this comment. Even the really basic ones and the really advanced ones.

Re: Perplexity AI's new tool for researching the stock market

#15
post #14

Earlier quoted context omitted.

That's a lot of "this won't work" without very much "here's what does work" leading me to conclude this is bluster and ego. I always hear these finance people dick waving about how crap everyone else's methodologies are without examples of their own. This leads me to conclude it's all snake oil anyway. So I'm asking, speaking as a former M&A financial advisor... What _does_ work?

nothing. There is no way to predict the stock market. Even the way you're probably thinking of. Even the ones in the replies to this comment. Even the really basic ones and the really advanced ones.

This. If something "worked", then nobody would share it, or it's so popular that everyone has everyone applied it, and it doesn't work anymore.

Re: Perplexity AI's new tool for researching the stock market

#16

Speaking as a former M&A financial advisor and valuation nerd, historical financial data is very close to worthless for any valuation work, except perhaps for vaguely connecting the dots to your proprietary, forward looking financial model which is based on a deep understanding of a particular company and industry. This reads to me like garbage in, garbage out... just like 99.9999% of current resources on financial d…

That's a lot of "this won't work" without very much "here's what does work" leading me to conclude this is bluster and ego. I always hear these finance people dick waving about how crap everyone else's methodologies are without examples of their own. This leads me to conclude it's all snake oil anyway. So I'm asking, speaking as a former M&A financial advisor... What _does_ work?

What makes you confident a methodology that consistently beats the market exists?

Re: Perplexity AI's new tool for researching the stock market

#17
post #16

Earlier quoted context omitted.

That's a lot of "this won't work" without very much "here's what does work" leading me to conclude this is bluster and ego. I always hear these finance people dick waving about how crap everyone else's methodologies are without examples of their own. This leads me to conclude it's all snake oil anyway. So I'm asking, speaking as a former M&A financial advisor... What _does_ work?

What makes you confident a methodology that consistently beats the market exists?

There are a number of wealthy investors who don't tell other people about their methodology. They're either very lucky, criminals, or have beaten the market.

Re: Perplexity AI's new tool for researching the stock market

#19
post #16

Earlier quoted context omitted.

That's a lot of "this won't work" without very much "here's what does work" leading me to conclude this is bluster and ego. I always hear these finance people dick waving about how crap everyone else's methodologies are without examples of their own. This leads me to conclude it's all snake oil anyway. So I'm asking, speaking as a former M&A financial advisor... What _does_ work?

What makes you confident a methodology that consistently beats the market exists?

If such methodology doesn't exist then how are quantitative trading firms in business?

Genuinely wondering. Is this because they have so much money to play with that they can move markets in their favour?

Re: Perplexity AI's new tool for researching the stock market

#20

Speaking as a former M&A financial advisor and valuation nerd, historical financial data is very close to worthless for any valuation work, except perhaps for vaguely connecting the dots to your proprietary, forward looking financial model which is based on a deep understanding of a particular company and industry. This reads to me like garbage in, garbage out... just like 99.9999% of current resources on financial d…

Historical financial data is used for calculating correlations between assets, historical volatility, stress testing, VaR etc. All very useful if you follow any sort of risk management when constructing a portfolio.
Post reply on HN