Value investing requires modern intangible metrics
The guest argued that traditional value investing metrics are obsolete, requiring an updated framework that quantifies intangible assets like brand, IP, and human capital.
The argument
The guest explained that as the economy transitioned from industrial to asset-light, backward-looking metrics failed to capture the value of modern leaders. By using NLP and LLMs to parse unstructured data like patents and social media, quants can systematically identify undervalued companies with strong intangible moats.
The thesis, stress-tested
✓ What validates it
- ✓Outperformance of the ITAN ETF relative to traditional value benchmarks
- ✓Successful integration of LLMs in parsing unstructured patent and trademark data
▸ Risks discussed
- ▸Intangible metrics can be difficult to quantify accurately
- ▸Social media and sentiment data are subject to manipulation
- ▸Systematic models may miss unique fundamental shifts
Hear it yourself
"Josh, didn't you read your own audiobook? Amazing show. Yeah. Of course. Can you imagine somebody else reading my book? Didn't your brain feel like mush after doing that, though? I did it I did it. It took me six weeks. Six weeks? Yeah. See, I did it in two days. Because I I, Can you all switch headphones? Oh, sure. I don't know if you heard any of my audiobook, but I really Yeah. Wire on the piano. That thing like Mick Jagger. Like, I was like I'm not yelling into the microphone. Takes a like, it's a performance. It takes a lot out of you."
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