The good ones do.
Citadel Securities, Renaissance, Jane Street, HRT, Jump, consistently do 50%+ annual returns over the past 15-20 years. They obviously don’t accept outside investor money.
Now, hedge funds that accept outside money like DE Shaw, Bridgewater and shit, yeah, they barely outperform S&P500 after their fees.
Then at the bottom, you have financial advisors who underperform S&P500 after their fees, but these advisors provide emotional support, so that’s what you’re paying for.
That is only if you consider high-frequency trading investing. Which is very hard to, because on traditional investing timescales HFT is delta-neutral.
I mean, there isn't any evidence other than heresay.
3x leverage on VTI/VOO yields 20% annual return over the past 30 years.
Even you, a passive index fund investor, can do this in your Schwab/Fidelity account.
Now consider algorithmic prop trading firms with 10x, 20x leverage. You do the math.
For reference, most people take 5x leverage on their house (20% down payment).
Because fees as a manager of someone else’s money can be higher than the full amount of the returns if it were just your own money.
Fees on someone else’s capital: 1% of 20% of 1bn = 2m
Returns on your own capital: 20% of 1m = 200k
Anthropic could easily build a CRM equivalent to or better than salesforce but they still wouldn’t be able to compete with salesforce. It makes a lot more sense to sell salesforce tokens instead.
Imagine how much money they'd raise if they just said one day "we are going after salesforce bottom line now." It would be like chumming the water.
Selling AI to everyone does scale though!
As many in the industry say now - writing code was never the hard part
Maybe that's their way of becoming Google?
What do you think Claude (chatbot web interface) is?
My only explanation is that Anthropic's search backend sucks.
However, I can tell you someone who fits all those criteria: Levi Strauss. Strauss founded a company to sell dry goods, as well as tents and jeans, and eventually specialized in those denim jeans. Levi Strauss became a household name and an enduring success of the Gold Rush.
Therefore, I say that this motto is flawed; so let's correct it: "In a gold rush, sell the work clothes!"
You’ve desperately tried to call me out and flag me at least 3 times now.
You do not know what a neural network is? Do you know what a neuron is? Do you… possess any neurons?
On a forum where the most favored pastime is to call out stuff you don't like as “slop”, (a flaggable ad hominem) you are now taking pride in outing me somehow, as someone who describes exactly what I'm doing, publicly in my profile?
And in the process, you have publicly fallen for the most transparent and avoidable trolls in AI culture. Congratulations, mate!
Fielding a web index takes a massive amount of compute and storage of a very different kind than what Anthropic is using. AI is extremely heavy on GPU, maybe somewhat on storage but (comparatively) light on CPU. They need CPU to train coding agents, obviously, but scaling to a billion user web search is a whole different thing.