Investor Daily’s latest article by Georgie Preston outlined Talaria co-CIO Chad Padowitz’s thoughts on the current market ‘overconfidence’ especially when it comes to AI.
While the artificial intelligence boom will produce major winners and losers, he argued it is still too early to identify them with the certainty markets are currently pricing in.
“We see so many portfolios positioned as though the next decade can be forecast with pinpoint precision. Investors are willingly paying for companies whose valuations are reliant on earnings years and even decades into the future,” Padowitz said.
“When you pay 20, 25, 30 times earnings for anything you are taking a confident view of a 15-to-30-year time horizon. But the future is unknowable and there are going to be substantial winners and losers from AI.”
Chad Padowitz is the Co-Chief Investment Officer of Talaria Asset Management. He has more than 25 years’ experience in the financial services industry in the UK, South Africa and Australia.
His experience includes working as an analyst in the treasury department at HSBC Bank in London, in derivative reporting and analysis, and as an equities research analyst at First National Bank in South Africa.
Chad holds a Bachelor of Commerce from University of the Witwatersrand (South Africa), is a Fellow of the Financial Services Institute of Australasia and is a Chartered Financial Analyst charterholder. Chad co-founded Talaria Asset Management in 2018.
