To Become a Better Investor, Think Like Darwin


On financial innovations — read derivatives and securitizations — and the need for more collaboration :

People respond to incentives, and so if we want to take on much bigger challenges, we need to collaborate across thousands and in some cases hundreds of thousands of people. How do you get 100,000 people to work together? It’s not that easy. In the old days, it was religion and before that it was simple fiat rules, tyranny. The Egyptians built some beautiful pyramids, but they did that with hundreds of thousands of slaves over decades. If we rule out slavery as a possible means of societal advances, there really isn’t any other choice. If we need 100,000 people to cure cancer, to deal with Alzheimer’s, to figure out fusion energy and climate change…I don’t know of any other way to do that other than financial markets: equity, debt, proper financing and proper payout of returns. I think that in many cases [finance] probably is the gating factor. That, to me, is the short answer to the question about why finance is so important.

→ Nautilus

The Dark Secret at the Heart of AI

Credit : Adam Ferriss

As the technology advances, we might soon cross some threshold beyond which using AI requires a leap of faith. Sure, we humans can’t always truly explain our thought processes either—but we find ways to intuitively trust and gauge people. Will that also be possible with machines that think and make decisions differently from the way a human would? We’ve never before built machines that operate in ways their creators don’t understand. How well can we expect to communicate—and get along with—intelligent machines that could be unpredictable and inscrutable?

Illustration : Adam Ferriss

→ MIT Technology Review

Is Artificial Intelligence Permanently Inscrutable?


The result is that modern machine learning offers a choice among oracles: Would we like to know what will happen with high accuracy, or why something will happen, at the expense of accuracy? The “why” helps us strategize, adapt, and know when our model is about to break. The “what” helps us act appropriately in the immediate future.

It can be a difficult choice to make. But some researchers hope to eliminate the need to choose—to allow us to have our many-layered cake, and understand it, too. Surprisingly, some of the most promising avenues of research treat neural networks as experimental objects—after the fashion of the biological science that inspired them to begin with—rather than analytical, purely mathematical objects.

→ Nautilus

The Twin Prime Hero

Yitang “Tom” Zhang spent the seven years following the completion of his Ph.D. in mathematics floating between Kentucky and Queens, working for a chain of Subway restaurants, and doing odd accounting work. Now he is on a lecture tour that includes stops at Harvard, Columbia, Caltech, and Princeton, is fielding multiple professorship offers, and spends two hours a day dealing with the press. That’s because, in April, Zhang proved a theorem that had eluded mathematicians for a century or more. When we called Zhang to see what he thought of being thrust into the spotlight, we found a shy, modest man, genuinely disinterested in all the fuss.

On solving an unsolvable problem :

Q : Did you experience any emotions when you realized you’d solved the problem?
A : Not so much. I am a very quiet person.

Q : Were you excited?
A : A little. Not too much.

Edit : Here’s a link to a documentary on Yitang : Counting From Infinity.

→ Nautilus

A Bigger Problem Than ISIS ?

In the language of hydraulic engineering, the process eroding the foundation is known as “solutioning.” If that problem is not addressed, what happens next is “piping”: water begins to travel between the voids, moving horizontally beneath the dam. To illustrate, American engineers have devised a triangular chart. The process begins, at the apex, with solutioning, advances through cavity formation and piping, and ends with core collapse and, finally, dam breach—like a Florida sinkhole opening up, unannounced, beneath a shopping center. Engineers jokingly refer to the chart as the “triangle of death.” Schnittker told me, “Once piping begins, there is no going back. In twelve hours, the dam is gone.”

→ The New Yorker

The Great A.I. Awakening

Illustration by Pablo Delcan

And yet the rise of machine learning makes it more difficult for us to carve out a special place for us. If you believe, with Searle, that there is something special about human “insight,” you can draw a clear line that separates the human from the automated. If you agree with Searle’s antagonists, you can’t. It is understandable why so many people cling fast to the former view. At a 2015 M.I.T. conference about the roots of artificial intelligence, Noam Chomsky was asked what he thought of machine learning. He pooh-poohed the whole enterprise as mere statistical prediction, a glorified weather forecast. Even if neural translation attained perfect functionality, it would reveal nothing profound about the underlying nature of language. It could never tell you if a pronoun took the dative or the accusative case. This kind of prediction makes for a good tool to accomplish our ends, but it doesn’t succeed by the standards of furthering our understanding of why things happen the way they do. A machine can already detect tumors in medical scans better than human radiologists, but the machine can’t tell you what’s causing the cancer.

→ The New York Times

Why You Can’t Help But Act Your Age

Most of us are slaves to our chronological age, behaving, as the saying goes, age-appropriately. For example, young people often take steps to recover from a minor injury, whereas someone in their 80s may accept the pain that comes with the injury and be less proactive in addressing the problem. “Many people, because of societal expectations, all too often say, ‘Well, what do you expect, as you get older you fall apart,’ ” says Langer. “So, they don’t do the things to make themselves better, and it becomes a self-fulfilling prophecy.”

It’s this perception of one’s age, or subjective age, that interests Antonio Terracciano, a psychologist and gerontologist at Florida State University College of Medicine. Horvath’s work shows that biological age is correlated with diseases. Can one say the same thing about subjective age?

→ Nautilus