Feb 28, 2025

Today, I came across news discussing how artificial intelligence is being used to predict stock prices. There are two main approaches: building a deep learning model to analyze historical data and predict future returns, or using a large language model to mimic the decision-making style of someone skilled at picking stocks, like Warren Buffett. While the second approach may seem indirect, it offers advantages such as explainable reasoning and the ability to leverage existing models.

In another news, BlackRock entered a financing deal with banks that linked lending costs to diversity and inclusion goals. However, recent reports indicate that BlackRock has cut references to its diversity strategy, suggesting a shift in focus. This change raises questions about the true impact of diversity incentives in loan agreements and the motivations behind such arrangements.

Additionally, there is discussion about related parties in accounting, particularly in the case of Tesla and the US government. The question arises whether Tesla and the government should be considered related parties under accounting standards due to Elon Musk’s influence. This classification could lead to increased disclosure requirements for Tesla regarding transactions with the government.

Overall, these news pieces highlight the evolving landscape of financial strategies, the importance of transparency in reporting, and the implications of influential individuals on business dealings. The intersection of technology, diversity initiatives, and accounting standards continues to shape the financial industry and raise questions about governance and disclosure practices.

Today, I came across news about Tesla potentially having to consolidate government debt into its accounting, which could be an interesting outcome. Additionally, there are reports of Tesla facing challenges in Europe, with a 45% decline in sales following its first annual drop in global deliveries in over a decade. This decline is attributed to the company facing strain in regions where its CEO, Elon Musk, is engaging in political activities that conflict with Tesla’s mission and values.

Stay Well!