AI Investing¶
Part 2 Mission
Translate the industry knowledge from Part 1 into investment judgments — a general investment framework (Part 2.A) + AI industry-specific analysis (Part 2.B). Part 2.A applies to any industry; Part 2.B is unique to the AI industry.
Part 2 Backbone
General → Specific. First learn the general frameworks of the three giants Buffett / Munger / Graham (P2A), then learn the 4 dimensions of the AI thesis (P2B) — the latter builds on the former.
Structure: 2.A General + 2.B AI-Specific¶
General Investment Model (5 Chapters)¶
Tools that apply to any industry. Valuation / Mental Models / Historical Analogs / Portfolio / Behavioral Finance.
| # | Title | Core One-Liner | Est. Time |
|---|---|---|---|
| P2A-C1 | Valuation Basics (DCF / Multiples / Margin of Safety) | Price is what you pay, value is what you get, always demand a margin of safety | 1 hr |
| P2A-C2 | Mental Models (Buffett / Munger / Graham) | Latticework — 70 interdisciplinary frameworks interwoven | 1 hr |
| P2A-C3 | Historical Analogs (dotcom / mobile / Industrial Revolution) | Find a historical anchor for AI; base rates don't betray | 1 hr |
| P2A-C4 | Portfolio Construction | Sizing + concentration + risk parity | 1 hr |
| P2A-C5 | Behavioral Finance (6 Biases) | Your biggest opponent isn't the market, it's yourself | 1 hr |
AI Industry-Specific Analysis (5 Chapters)¶
Analysis frameworks unique to the AI industry. Thesis 4 Dimensions + KPI Predictions + Walkthrough + Write Your Own Thesis.
| # | Title | Core One-Liner | Est. Time |
|---|---|---|---|
| P2B-C1 | What Problem Does Your Stock Solve? | First say WHAT, then say WHY | 30 min |
| P2B-C2 | 4-Dimensional Thesis Framework | Don't miss a single dimension | 1 hr |
| P2B-C3 | Valuation / Financial Reporting Glossary | Translate terms first when you see them | 1 hr |
| P2B-C4 | Real Walkthrough (NVDA) | Run your first real case | 2 hr |
| P2B-C5 | Write Your Own Thesis | You only truly learn when you write it down | 1 hr + ongoing |
Recommended Pace — 2 Weeks in Batches¶
Week 1 ·
General Investing¶
5 chapters — Valuation / Mental Models / Historical Analogs / Portfolio / Behavioral Finance. Usable even without AI.
What You Can Achieve After Part 2¶
- Use DCF / multiples to estimate a fair value range for one stock
- Use 4-5 Buffett / Munger mental models to dissect one decision
- Identify which historical period AI most resembles (dotcom / mobile / Industrial Revolution)
- Size a portfolio (concentration vs diversification)
- Recognize 6 behavioral biases in your thesis
- Write your own thesis using the 4-dimensional YAML + KPI predictions + weekly/monthly reviews
Part 2 Complements Part 3
Part 2 = Investment Framework (valuation + thesis template). Part 3 = Process (top-tier funds / Buffett / find bottlenecks / multi-perspective / Anti-thesis). Framework + Process used together — neither is optional.