Active investing is inherently unprofitable for practitioners as a collective, like a 'plumbing business called Floods R Us' where you cause the problem you claim to solve; AI will make active investing harder, not easier, because all investors will have access to the same tools, eroding any information advantage.
causalpending
Speaker
Aswath DamodaranEvidence Quote
“Active investing is a horrifically run business. It's the only business I can think of where collectively you actually do worse than doing nothing at all... I will safely predict that if you think active investing is difficult now, it's going to become doubly be with AI. Cuz everybody will have access to the tools.”
Source
Aswath Damodaran: I Am More Cautious Than Ever— The Master Investor Podcast with Wilfred FrostCreated: 8/12/2026, 6:41:25 PM
My Notes
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