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Stocks for the Long Run

In theory, a share of stock is worth the present value of all of its future cash flows. A dollar of earnings today is worth more than a dollar of earnings in 10 years, because you use some non-zero discount rate in computing the present value.

So, in theory, every investor, whether their holding period is a millisecond or a decade, should care equally about the long-term cash flows of the company, because those cash flows determine the future price of the stock at every moment, and the way any stock investor makes money from their investment is by selling the stock.

In practice nobody really believes this in their bones.

Wall Street and AI Startups Are Fighting Over Entry-Level Quants

Anthropic is actively recruiting quant researchers from Wall Street, offering competitive compensation packages that include equity. The company is expanding its recruitment efforts globally, with events in London following a successful mixer in Manhattan. Anthropic is seeking individuals with rigorous analytical thinking and empirical research methods to develop safer and more capable AI systems. The company has hired former Jane Street employees Aron Thomas and Charles Guo, who were drawn to the potential impact of AI on the world.

Unicorns May Throw a Lifeline to Stock Analysts

If the $5 trillion of value locked in unicorns eventually generates trading commissions and ancillary revenue through tokenization, it would create a massive new earnings stream for research departments. In a world where private is increasingly the new public, research departments that fail to adapt risk becoming as obsolete as the shrinking roster of companies they currently cover.