All Segments
a16z Podcast | How Technology Is Changing Investing
11 segments available
As people begin to gain access to information that was previously left to only trained specialists, a new set of asset classes are being created -- and they are changing the way we think about everything from banking to customizing portfolios and more. But if investing (and most decision making, in fact) is about navigating uncertainty, what can new tools and models do -- and not do -- for investors both big and small?
Segments Timeline
The Rise of New Asset Classes
In this segment, the hosts introduce the podcast's theme, discussing how increased access to information is leading to the emergence of new asset classes. They highlight the shift in banking and investing paradigms, emphasizing the importance of understanding these changes for both retail and institutional investors.
"hi and welcome to the a 16z podcast as the average consumer gets access to more and more information that used to be reserved for trained specialists we're starting to see new asset classes form that ..."
Impact Investing and Market Trends
Josh Levin shares insights from his decade-long experience in impact investing, identifying three major trends in wealth management: the shift towards passive investing, the rise of socially conscious investing, and the demand for better digital tools. He explains how these trends are reshaping investment strategies for individuals and institutions.
"2017 Josh a lot of your team comes from Bridgewater which is now you know one of the better known hedge funds especially after Ray's Ray Dalio book has come out why why would someone come to an invest..."
Customizing Investments to Personal Values
Levin elaborates on how investors can align their portfolios with personal values, such as avoiding investments in weapons companies. He explains the technology behind customizing portfolios while maintaining market performance, allowing clients to invest according to their ethical beliefs.
"awesome digital interface and we realized that we could take their skillset and point it towards instead of beating the market point it towards passive investing towards buying and holding the market ..."
Empowering Investors with Transparency
The discussion shifts to the importance of transparency in investing. Levin emphasizes the need for better tools that empower individual investors to make informed decisions about their investments, highlighting the company's mission to level the playing field on Wall Street.
"portfolios so you guys support eight causes now it's time I think we have about a dozen and doesn't know working with institutions we obviously do a lot more a customization around their concerns how ..."
The Role of Data in Investing
The conversation explores how data accessibility is transforming investing. Levin discusses the challenges faced by retail investors in understanding complex data and how their platform aims to simplify this process, making it easier for users to engage with investment strategies.
"leveling the playing field on Wall Street but what do you mean by that there's just a huge imbalance between the amount of data that could be used in investing and just the number of people that are t..."
Creating Effective Investment Strategies
Levin shares insights on the importance of research in developing successful investment strategies. He contrasts the approaches of quants who focus on research versus those who overfit their algorithms, emphasizing the need for creativity in strategy development.
"the basis of all marketplaces if you think of something like air B&B what does their platform actually do it not only maxes people with rooms with people who want to rent but there's also our ratings ..."
Evaluating Quantitative Strategies
In this segment, Levin discusses how to evaluate the effectiveness of quantitative strategies. He explains the significance of distinguishing between in-sample and out-of-sample data to avoid overfitting and improve the reliability of investment strategies.
"find it somewhat reassuring because that is the creativity step right that's the step that really is still very very dependent on human creativity and that's that's the thing that ultimately prevails ..."
Engaging Retail Investors in Shareholder Activism
The discussion turns to shareholder activism, focusing on how retail investors can participate in proxy voting. Levin highlights the challenges faced by individual shareholders and the company's efforts to simplify the voting process, empowering investors to influence corporate governance.
"the evaluation and then downstream from that there's like 50 features now from from each strategy and starting to tests on the predictive efficacy of each of those features and you know building up ou..."
The Shift from Active to Passive Investing
Levin addresses the ongoing trend from active to passive investing, discussing its implications for market stability and investor behavior. He presents both the benefits and risks associated with this shift, particularly during market corrections.
"families and institutions and to us an example of a very important vote that came up recently very good impact because you could make the argument like ah who really cares like it's a diffuse number o..."
The Future of Investment Paradigms
Levin speculates on the future of investing, suggesting a shift towards a new paradigm where investors can rent strategies tailored to their values. He discusses the potential for technology to disrupt traditional banking systems and enhance investment accessibility.
"interesting to see it like we're going to settle out in terms of the max I think there's a trend especially among the Millennials but even broader just being more globally conscious more cos oriented ..."
Harnessing Data for Investment Innovation
In the final segment, Levin envisions a future where comprehensive data analysis drives investment decisions. He emphasizes the need for creative human input in interpreting data and developing innovative investment vehicles, highlighting the potential for significant growth in the investment landscape.
"think what's going to drive uptake towards the third paradigm is the values based conversation 85 percent of Millennials one investing company is aligned with their values right it's not going away an..."