Natural selection and the AI wave, Think Smarter, Not Harder, Peter Lynch on Market Corrections
Hi readers,
This week I’d like to share with you these ideas:
Natural selection and the AI wave
Think Smarter, Not Harder
Quote from Peter Lynch on market corrections
Natural selection and the AI wave
“It's not the strongest or most intelligent species that survive, but the one that is the most responsive to change.” — Charles Darwin
Recently I watched David Attenborough’s documentary “Asia”, which explores the amazing wildlife of the world’s largest continent.
Every scene was spectacularly filmed (spoiler: Singapore was also featured), and it’s fascinating to learn about the natural wonders of our world.
It also got me thinking about how nature mirrors technology and businesses.
Natural selection and competition
Evolutionary biology emphasises natural selection - organisms with advantageous traits have a higher chance of surviving and reproducing.
Like giraffes with long necks.
Overtime, this becomes the “norm” for the population.
Likewise in the business world, natural selection favours companies that can adapt quickly to changing user needs, emerging technology, and new business models. We have seen many examples of these.
Companies like Salesforce revolutionized software delivery with SaaS. Amazon's innovation in logistics and personalized recommendations outpaced traditional retailers. Tesla is pushing boundaries in autonomous driving and space travel, shaping the future of transportation.
AI Wave
The AI industry is evolving at lightning speed — new models, technology architectures, and regulations emerge constantly. With such rapid change, companies with “advantageous traits” can survive, or even thrive.
But while AI can level the playing field, the scale is seen to be tweaked to favour larger companies with more resources, data to train the model, and access to top talent.
DeepSeek's open-source and cost-effective LLMs are changing this narrative.
How will the continued democratization of LLMs spark the next wave of industry leaders?
Perhaps data is now the main bottleneck for LLM development rather than hardware.
Time will tell, but one thing is certain: only the adaptable (or paranoid) will survive.
Think Smarter, Not Harder
In this podcast by Howard Marks and Guy Spier, they explore key principles of successful investing. This includes mastering market cycles, second-level thinking, risk management, and the importance of long-term, contrarian positions.
Listen: Think Smarter, Not Harder
Quote from Peter Lynch on market corrections
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” — Peter Lynch
That's all I have for you today.
If you enjoy this post, the best compliment you can give me is to share this with one person who would benefit from it.
Stay curious and see you soon.
Cheers,
Tess
Let's connect! 💬 You can find me on Twitter, LinkedIn, and Youtube.