AI Reviews on Art of Investing 5th Editoin

 

Review by artificial intelligence (AI)

 

Many thanks to the most unbiased reviews by AI. I received 4/5 stars for most of my books – it could be the highest AI would give besides the classics. Unless otherwise specified, most reviews were done in Feb., 2025. The following review(s) are in their entirety.

 

It is rated 4.5/5 by both ChatGPT and DeepSeek. “5/5” is reserved for classics that may be irrelevant to today’s market and available tools. It is more amazing with so many shortcomings mentioned in the review.

 

I accept all suggestions. However, I did repeat a few important concepts, so the reader does not have to waste time in searching for them. Some examples are older for a good reason. For example, if I did not use the market crash of 2000, I only had one market crash to illustrate.

ChapGPT

 

Overall Impression:
Art of Investing: 5th Edition is an extensive, well-structured guide designed for investors of all levels. With over 600 pages, it offers a deep dive into investing strategies, market timing, risk management, and stock selection. The book blends personal experience with data-driven techniques, making it both informative and practical.

Strengths:

✅ Comprehensive Coverage – The book spans 16 “mini-books,” covering everything from beginner investing techniques to advanced stock scoring, market cycles, and sector rotation strategies. It even includes guidance on artificial intelligence in investing.

✅ Proven Strategies – The author shares his own investment successes, highlighting methods that have consistently outperformed the S&P 500. His use of sector rotation, fundamental analysis, and market timing offers valuable insights.

✅ Practicality & Accessibility – The book is structured as a reference manual rather than a linear read, allowing investors to jump to relevant sections. It also includes actionable advice, checklists, and step-by-step guides.

✅ Personal Insights & Humor – The inclusion of personal anecdotes, humor, and lighthearted “fillers” makes the book more engaging than a traditional investing manual.

✅ Use of Free Tools – The book extensively references resources like Finviz, Fidelity, and ETFdb, making sophisticated analysis accessible to retail investors without costly subscriptions.

Areas for Improvement:

🔸 Length & Density – At over 600 pages, the book is packed with information, which can be overwhelming for beginners. A more concise version or a summary section for each chapter could improve readability.

🔸 Editing & Formatting – Some sections could benefit from tighter editing to improve flow and readability. The humor and filler content, while entertaining, might feel excessive for readers looking for a purely analytical approach.

🔸 Market Timing Debate – While the book provides strong evidence supporting market timing strategies, some traditional investors may find this approach debatable, as it contradicts the “buy and hold” philosophy endorsed by many long-term investors.

Final Verdict:

⭐️⭐️⭐️⭐️½ (4.5/5)

Art of Investing: 5th Edition is a must-read for investors who want to actively manage their portfolios and seek strategies beyond passive investing. Tony Pow presents a well-researched, experience-backed guide that can help investors navigate market cycles and maximize returns. If you are looking for an investing book that combines data, strategy, and personal insights, this one is worth adding to your library.

 

 

DeepSeek

 

Your book, Art of Investing 5th Edition, is a comprehensive and practical guide that caters to investors of all levels, from beginners to advanced fund managers. Here's a review based on the content provided:

Strengths:

1. Comprehensive Coverage:
• The book covers a wide range of topics, from basic investment strategies to advanced techniques like sector rotation, market timing, and insider trading. It’s structured into 16 interconnected "books," each focusing on specific aspects of investing, making it both a reference guide and a practical manual.
2. Proven Strategies:
• You share your personal investment strategies and techniques, many of which have been proven to outperform the market. For example, your sector rotation strategy has yielded returns exceeding five times your initial investment, and your stock recommendations have consistently beaten the S&P 500.
3. Practical Tools and Resources:
• The book emphasizes the use of free or low-cost tools like Finviz, Fidelity, and ETFdb, making it accessible to retail investors. You also provide step-by-step instructions on how to use these tools effectively.
4. Risk Management:
• You stress the importance of risk management, advocating for stop-loss orders, diversification, and avoiding leverage for beginners. This is crucial for long-term success in investing.
5. Market Timing:
• Your market timing techniques, particularly the use of SMA (Simple Moving Averages) and RSI (Relative Strength Index), are well-explained and have been effective in avoiding major market downturns.
6. Personal Insights:
• You share your personal successes and mistakes, making the content relatable and actionable. This transparency adds credibility and helps readers learn from your experiences.
7. Focus on Education:
• The book encourages readers to practice with paper trading and provides practical exercises. This hands-on approach is beneficial for beginners who need to build confidence before investing real money.
8. AI Integration:
• The inclusion of AI tools like ChatGPT and DeepSeek for stock analysis and market predictions is forward-thinking, though you caution readers about the limitations of outdated databases.

Weaknesses:

1. Dense and Lengthy:
• While the book is comprehensive, its length (770 pages) and density might be overwhelming for some readers, especially beginners. The sheer volume of information could make it difficult to digest in one go.
2. Outdated Data:
• Some of the examples and data, particularly those related to specific stocks or market conditions, may become outdated quickly. While you advise readers to focus on the rationale behind the examples rather than the specific stocks, this could still be a limitation.
3. Complexity for Beginners:
• Although you provide beginner-friendly sections, some of the advanced techniques (e.g., short selling, momentum investing) might still be too complex for novice investors. The book could benefit from more simplified explanations or additional beginner-focused content.
4. Over-Reliance on Specific Tools:
• The book heavily relies on specific tools like Finviz and Fidelity. While these are excellent resources, readers who prefer other platforms might find it challenging to adapt the strategies to their preferred tools.
5. AI Limitations:
• While the integration of AI is innovative, the reliance on AI tools like ChatGPT and DeepSeek comes with the caveat that their databases may not be up-to-date. This could lead to outdated or inaccurate recommendations, which you acknowledge but could be a concern for readers.

 

Overall Impression:

Art of Investing 5th Edition is a valuable resource for anyone looking to improve their investment skills. It’s particularly well-suited for intermediate to advanced investors who are familiar with the basics and are looking to refine their strategies. The book’s strength lies in its practical, actionable advice and the author’s willingness to share personal insights and proven techniques.

However, beginners might find the book overwhelming due to its length and the complexity of some topics. Additionally, while the inclusion of AI tools is innovative, readers should be cautious about relying too heavily on them due to potential data limitations.

 

Final Verdict:

Overall, Art of Investing 5th Edition is a solid, well-researched, and practical guide that offers a wealth of information for investors. It’s a must-read for those who are serious about improving their investment acumen and achieving long-term financial success. However, beginners may need to take it slow and focus on the foundational sections before diving into the more advanced strategies.

 

Rating: 4.5/5

Black Swans

The following is from my book "Art of Investing 5th Edition".

This article on Black Swan events provides a retrospective and forward-looking analysis of significant, unpredictable events that have had or could have a major impact on the economy, markets, and society. I reflect on past events and offers predictions for potential future disruptions. Here's a review of the key points:

 

1. Historical Black Swan Events:

• 2000 Dot-com Bubble: I highlight the poor quality of Super Bowl ads and the small size of internet companies as indicators of the bubble. I personally shifted investments from tech mutual funds to traditional funds or cash, avoiding significant losses.
• 9/11/2001: The market plunged by 14%, and my stop-loss orders were executed, leading to losses. However, the economy recovered relatively quickly, and the event did not cause long-term economic harm.
• 2008 Lehman Brothers Collapse: The collapse of Lehman Brothers led to a 21% market drop. China's intervention helped stabilize the global economy. The event underscored the importance of diversification.
• 2024 China Housing Market Bubble Burst: I predicted the bursting of China's housing bubble far earlier than 2024, drawing parallels to the 2000 internet bubble.
• January 2025 Tech Stock Plunge: I speculated that DeepSeek (possibly an AI or tech-related event) caused a plunge in tech stocks, particularly affecting companies like NVDA. Despite the drop, I still believe NVDA's products will remain essential for AI.

 

2.       Future Black Swan Predictions (as of February 2025):

I outline several potential future black swan events, emphasizing the need for preparedness:

 

1.       National Debt Crisis: If the U.S. cannot service its national debt, it could lead to a depression. I mention Musk's efforts to cut expenses and Trump's tariffs as potential contributing factors. I estimated we could balance the budget by reducing half of our defense budget, half of the government employees, and  reducing corruption.

2.       Military Conflict: The possibility of Trump starting another war or using military force to capture foreign land is raised, though I hope this will not happen.

3.       Cybersecurity Threats: i warn that cyberattacks could cripple national infrastructure, emphasizing that this is a real and present danger.

4.       Economic Downturn: Inflation (partly due to tariffs) and unemployment (due to AI, robots, and layoffs) could bring down the economy.

5.       Social Unrest: High unemployment could lead to widespread social unrest.

6.       Bitcoin Collapse: I question whether Bitcoin is peaking and suggests that quantum computing or new NVDA chips could disrupt cryptocurrency mining. Outlawing Bitcoin by countries could also trigger a collapse.

7.       Decoupling from China: A total economic decoupling from China could have severe consequences, given the reliance on China for rare earth elements and consumer products.

8.       Corruption: I suggest that corruption within government agencies is a significant issue, with former government employees often getting jobs from companies they previously favored. Insider trading among politicians is also highlighted as a concern.

 

3. Themes and Takeaways:

• Unpredictability: This article emphasizes the unpredictable nature of black swan events and the importance of being prepared for the unexpected.
• Diversification: I repeatedly stress the need for diversification to mitigate the impact of such events.
• Historical Parallels: I draw parallels between past events (e.g., the dot-com bubble, 9/11, Lehman Brothers) and potential future crises (e.g., China's housing bubble, tech stock plunges).
• Speculative Nature: Many of the predictions are speculative, and the author acknowledges that they may not come to pass. However, the exercise of considering these possibilities is valuable for risk management.
• AI. It will change the world for sure. Commercial real estate will suffer most, as many can work at home, and many jobs will be replaced by AI.

 

4. Strengths:

• Real-World Examples: The use of historical events (e.g., 9/11, Lehman Brothers) provides concrete examples of how black swan events can unfold and their impact on markets and society.
• Forward-Looking Analysis: The predictions for 2025 and beyond encourage readers to think critically about potential future risks and how to prepare for them.
• Personal Experience: My personal anecdotes (e.g., shifting investments during the dot-com bubble) add credibility and relatability to the analysis

.

5. Weaknesses:

• Speculative Predictions: While the predictions are thought-provoking, they are highly speculative and lack concrete evidence or data to support them.
• Political Bias: This article includes some politically charged statements (e.g., regarding Trump and Musk), which may alienate some readers or detract from the objective analysis of black swan events.
• Lack of Solutions: While I identify potential risks, there is limited discussion of specific strategies or solutions to mitigate these risks beyond general advice to diversify.

 

 

Conclusion:

 

This article provides a compelling overview of past black swan events and offers a series of speculative predictions for future disruptions. My emphasis on diversification and preparedness is sound advice, though the speculative nature of the predictions should be taken with caution. This article serves as a useful reminder of the importance of being vigilant and adaptable in the face of uncertainty.