In order to understand Artificial intelligence, machine learning, deep learning, we need to start at the very basics.
π§΅π§΅π§΅π§΅ π
Artificial Inteligence = π₯οΈ + π§
When can you expect your fridge & mobile phone to revolt against you? (Spoiler Alert: Not in the foreseeable future).
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In order to understand Artificial intelligence, machine learning, deep learning, we need to start at the very basics.
Person 1: Lets go watch The Dark Knight. Its our marriage anniversary!
Person 2: I dont like going out at night. Its too scary & depressing.
Person 1: Oh, what i meant was watching the movie "The dark Knight".
Person 1: Thanks honey, you're the best :D.
Person 1: As serious as Harvey Dent. As serious as Gautam Gambhir's surname.
Person 2: Okay, I dont know who they are, and obviously I was being sarcastic.
But its more than that. This language, in which computers talk, every string has a unique precise way to understand the 'sentence' (also known as a computer program). No ambiguity. No Ambiguity.
This is the stereotypical 1st program which any person new to Computer Science writes in one of the computer programming languages: Python.
As old as our tryst with computers is our yearning to see them do 'intelligent' things. This was the 1st time that humans have turned God. And we wanted to build our prodigy in our own image. Give it the gift of intelligence.
Artificial Intelligence: Any style of programming which enables computers to mimic humans.
so, through a limited set of atomic or basic programs we can represent an exponential set of outcomes.
Good resource: https://t.co/Yn7pV45yip
Now that we can simulate a neuron, what is the next step? Of course, to simulate an interconnected web of neurons! These are what are known as artificial neural networks.
It turns out, single hidden layer feed forward neural networks can approximate ANY* function to arbitrary degree of precision.
*terms & conditions applied.
https://t.co/WFRooX53Sx
While the theorem proves that such networks exist for each function and degree of precision, it says NOTHING about how to find them.
Let me describe this algorithm in few easy steps. I will try to keep it as non-mathematical as possible since many readers might have a non-mathematical background. Some math is unavoidable thought.
https://t.co/AfxlveCec6
https://t.co/yTZ9W55ncy
We have known about ANNs for many decades. Why then did we have to wait until 2010s before seeing wide ranging applications?
1. Lot of data. If we're learning from data (this is the core of machine learning), we need lot of data! To capture all the variations in data. https://t.co/9x4qnTAWB4
https://t.co/NZDi4fYpU6
https://t.co/tudLnUAhHh
I'm been untruthful when i talked about 2 schools of thought in AI. There are several. What predates modern ML and developed alongside the other schools are traditional ML methods. Everybody loves talking about the winners.
https://t.co/ylraMZQips
We did parts of this in college.
It wouldn't be an overstatement to say, everything.
Google, Facebook, Instagram, YouTube, Google Photos, Twitter everything is powered by Deep Learning. Deep Learning is eating software, quite literally.
https://t.co/SXBoEXQuma
You can provide this program english description of what a program should do, and it codes that program. That day might not be far when standard programming is 'deprecated' by Deep Learning models.
https://t.co/7yz7ydUL0a
https://t.co/AprUFaYKJE
https://t.co/SQOQAPUvBL
So many great places. But in my opinion, best one is courses. There are many of them, all of them great. My Masters guide Ravindran sir has free NPTEL courses.
https://t.co/aIjSK13v0F
https://t.co/LwE94cwzoe
for those that prefer the gentler, simpler, easier version.
This is something which has worried many people. The short answer is, not in the foreseeable future. Computers are still quite dumb. They do what they're told. Remember objective functions? That is how you tell a DL model what to do.
More from Sahil Sharma
what better way to start sunday than a #kilpest thread: a classic peter lynch pick & shovel investment for the diagnostics sector. If you like the thread, please retweet this tweet to help educate max investors. ππ
Before I dive into Kilpest, some words on microcap investing. Everyone **needs** to be aware of what they are signing up for.
Two interviews from @varinder_bansal sirβs Omkara capital with very successful microcap investors (one with @iancassel sir: https://t.co/WDSOOIcUn8 ...
@iancassel & one with @hiddengemsindia sir: https://t.co/iC8iKOsKWz) do a wonderful job explaining all the landmines & things to keep in mind. Do watch these, please before you buy any #microcap
@iancassel @hiddengemsindia My own take is that one has to create a diversified PF of uncorrelated microcaps (if you'd typically invest in 5, make it 10 and so forth). Understand that liquidity risks will always remain.
Which one of these 4 companies should I make next thread on?
— Sahil Sharma (@sahil_vi) June 14, 2021
Before I dive into Kilpest, some words on microcap investing. Everyone **needs** to be aware of what they are signing up for.
Two interviews from @varinder_bansal sirβs Omkara capital with very successful microcap investors (one with @iancassel sir: https://t.co/WDSOOIcUn8 ...
@iancassel & one with @hiddengemsindia sir: https://t.co/iC8iKOsKWz) do a wonderful job explaining all the landmines & things to keep in mind. Do watch these, please before you buy any #microcap
@iancassel @hiddengemsindia My own take is that one has to create a diversified PF of uncorrelated microcaps (if you'd typically invest in 5, make it 10 and so forth). Understand that liquidity risks will always remain.
Given the immense interest in this #investment #process thread about how to get investment ideas, thought of creating a logical follow-up π§΅
Given that I have an idea & some sense for valuation & growth, how do i construct a portfolio?
If you like the thread, plz RT.
First thing worth mentioning is that I am only describing my own process. Others can follow a different process which could work for them.
Opposite of a good idea can also be a good idea
Before understanding the process itself, it is important to understand the problems the process is being designed to solve for. What are the key hurdles or troubles I have faced in designing my PF.
Hurdles
1. At any given point in time (in the past) i have only known deeply about 5% of the listed universe in India, or lower. When I say know deeply I mean read an annual report, an investor presentation, a concall, understood why the business is how it is.
2. I only started my corporate life 4 years ago, so my pf size is small compared to yearly savings. This means that I need to deploy large incremental capital every year at least for next few years. This cant be a buy & track pf, this is a keep buying & tracking for a few yrs pf
Given that I have an idea & some sense for valuation & growth, how do i construct a portfolio?
If you like the thread, plz RT.
A lot of people ask: how do you find companies to invest in? very good question.
— Sahil Sharma (@sahil_vi) July 6, 2021
How did you find RACL, Pix?
Creating this ad-hoc thread to share my process.
if you like it, please RT to benefit maximum investors. \U0001f64f
First thing worth mentioning is that I am only describing my own process. Others can follow a different process which could work for them.
Opposite of a good idea can also be a good idea
Before understanding the process itself, it is important to understand the problems the process is being designed to solve for. What are the key hurdles or troubles I have faced in designing my PF.
Hurdles
1. At any given point in time (in the past) i have only known deeply about 5% of the listed universe in India, or lower. When I say know deeply I mean read an annual report, an investor presentation, a concall, understood why the business is how it is.
2. I only started my corporate life 4 years ago, so my pf size is small compared to yearly savings. This means that I need to deploy large incremental capital every year at least for next few years. This cant be a buy & track pf, this is a keep buying & tracking for a few yrs pf
A lot of people ask: how do you find companies to invest in? very good question.
How did you find RACL, Pix?
Creating this ad-hoc thread to share my process.
if you like it, please RT to benefit maximum investors. π
1. https://t.co/2bvvRSBScr
Imagine what you want in a company, codify it in the form of filters, create a screen. Example below:
"Market Capitalization > 50
AND
Market Capitalization < 3000
AND
((Average return on capital employed 5Years > 25 AND
Price to Earning < 20) OR
(Average return on capital employed 5Years > 15 AND
Price to Earning < 10))
AND
Sales growth 5Years > 10
AND
...
...
Operating cash flow 5years /5 < Operating cash flow 3years /3
AND
Operating cash flow 7years /7 < Operating cash flow 3years /3"
In this screener, i am looking for
smallcaps with a min mcap,
which have a bare minimum average ROCE & valuation accordance to the unit economics
which are also growing topline
and where operating cash flows are also increasing, on an average basis
How did you find RACL, Pix?
Creating this ad-hoc thread to share my process.
if you like it, please RT to benefit maximum investors. π
1. https://t.co/2bvvRSBScr
Imagine what you want in a company, codify it in the form of filters, create a screen. Example below:
"Market Capitalization > 50
AND
Market Capitalization < 3000
AND
((Average return on capital employed 5Years > 25 AND
Price to Earning < 20) OR
(Average return on capital employed 5Years > 15 AND
Price to Earning < 10))
AND
Sales growth 5Years > 10
AND
...
...
Operating cash flow 5years /5 < Operating cash flow 3years /3
AND
Operating cash flow 7years /7 < Operating cash flow 3years /3"
In this screener, i am looking for
smallcaps with a min mcap,
which have a bare minimum average ROCE & valuation accordance to the unit economics
which are also growing topline
and where operating cash flows are also increasing, on an average basis