The debate over where AI value actually accrues just got a real data point. SemiAnalysis put numbers on it, and right now the model labs are winning a huge part of it.
A very simple way to sanity check stock valuation is by flipping the PE ratio to become earnings yield.
Price / earnings —> earnings / price
It shows you how much in earnings you’d theoretically make if you owned the whole company.
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- you still need to look at the full picture of a company before making any investment decisions. If a company’s earnings will crater next year, this method doesn’t make much sense. This is just a simple sanity check on valuation
@InvestInAssets Very true, but it’s also how you lose all your money if you’re wrong 😅. Recognition of your skill level in investing is equally important in deciding how much to put into individual stocks!
Quarterly reminder on Buffett’s investment style. Highly concentrated long-terms bets. His top 5 positions acct for 77% of his portfolio.
Not necessarily recommended for individual investors unless you’ve really done your research.
*Credit @WSJ for the image
- What an API is and how to connect to them (basically a URL that you can hit that will send data to your website)
- Most important - logical/organized thinking to structure the workflows/actions on the site (if this happens, then that)
Observation: Even though I don't need to code much using https://t.co/801OShb9A9 to build https://t.co/qJ2SHauCnX. Understanding web principles/data modeling/code has been enormously helpful in quickly picking up how the platform works.. more in thread