Frontpage Insights: Now robot Warren Buffett will invest through AI technology through entry of ETFs, investor strategies

Investors around the world follow Warren Buffett's path and want huge returns on investments. But not everyone can be a buffet. However, Buffett has explained his investment strategy and stock selection in several letters to investors. One of his best pieces of advice has been to invest in S&P 500 stocks for the long haul and get solid returns. Buffett has built his company into a $1 trillion (Rs 84 lakh crore) company in his 8-decade long career.

Now some fintech startups are trying to leverage artificial intelligence to benefit investors using the strategies of global investors including Buffett. Intelligent Alpa has done some similar experiments. This startup has launched a chatbot operated AI ETF. It claims to use the investment strategies of legendary investors such as Stanley Druckenmiller, David Tepper, Steve Cohen and Ryan Cohen in addition to Warren Buffett.

Working in engineering and emerging technologies, Intelligent Alpha has developed a large language model to follow the strategies of the world's leading investors. The trio of ChatGPT, Gemini and Cloud will select 60 to 90 global companies for investment. These companies will be based on different sectors and themes like healthcare, renewable energy. These companies are spread across many countries including Latin America. The list of investors followed by this AI ETF includes many names like Dan Loeb, Paul Singer besides Warren Buffet, Druckenmiller and Tepper. If the experiment is successful, in the future the common investor will be able to use Buffett's view to increase returns using technology.

While the product's ambitions are high, it's Wall Street's biggest experiment yet, aiming to create a whole new class of investors. Some hedge funds are already using chatbots for research and investment processes, and significantly AI can save more time on some tasks. AIQ) has seen meaningful inflows that have grown to around $1 billion now.

AI will find stocks by reviewing 5 years of track record According to Doug Clinton, founder and CEO of IntelligentAlpha, AI will use sources of information related to the patterns and moods of veteran investors. Apart from the reports filed by institutional investors every quarter, their public statements and interviews will also be reviewed. A large language model will use big data sets to understand new content, summarize it, and make predictions. Analysts will prepare data for AI by reviewing track record of famous investors for 5 years or more.