Research & References

Our Investment Philosophy in Plain Terms

We think about investments differently. Here's the basic idea: things lose value over time unless they adapt. Technology speeds this up. We look for investments that either create the future or won't become obsolete. Switch to Detailed view to see the academic research behind this approach.

The Big Idea: Everything Changes

Things Wear Out

Like ice melting or a car rusting, investments lose value over time. Technology makes this happen faster than ever.

Money Flows to Energy

Capital moves toward things that process the most activity—like AI data centers, power plants, and digital infrastructure.

Own the Rails, Not Just the Train

We focus on infrastructure that others depend on—the platforms, protocols, and power systems that enable everything else.

Why This Matters For Your Money

Traditional investing often ignores how fast things become outdated. A company that was cutting-edge 10 years ago might be irrelevant today. We try to identify which investments will still matter in 10-20 years—and which ones are already starting to "rust." This isn't about chasing the latest trend. It's about understanding where the world is headed and positioning accordingly.

How We Organize Investments

We think of investments in layers, from the most foundational (like energy and basic computing) to the most speculative (event-driven opportunities).

L1
Foundation
The base that everything else runs on
L2
Backbone
The roads and rails of the digital world
L3
Engine
The computing power that makes it all work
L4
Data Toll
Who collects and sells the information
L5
Interface
The tools people actually use daily
L6
Frontier
High-risk, high-reward opportunities
L7
Catalyst
Things that trigger big changes

How Physics Helps Us Invest

Ideas borrowed from science that help explain why some investments thrive while others fade away

Thermodynamics of Financial Markets

Markets don't give you something for nothing—you need real information to make money.

Entropy and Finance: A Review

Spreading your investments across truly different things is better than just avoiding similar ones.

Langevin Dynamics in Financial Modeling

Some investments naturally lose value over time as newer technology replaces them.

Maximum Entropy Production in Economic Systems

Money tends to flow toward whatever processes the most energy and information—like AI data centers.

The Carlota Perez Framework

New technology goes through predictable stages: first we build it, then everyone uses it.

Degrees of Confidence

Being too sure of yourself in uncertain markets is dangerous—stay humble about what you don't know.

How AI Helps Us Make Better Decisions

Using smart software to process more information and avoid common mistakes

Thermodynamic-Inspired AI Search Algorithms

AI works better when it follows rules from physics instead of just finding patterns in past data.

Hybrid LVQ-Entropy Model for Trading

Using uncertainty measurements helps avoid false signals—fewer bad trades, better results.

TERP: Thermodynamics-Inspired Explainable Representations

When AI is unsure about something, we can measure that uncertainty and be more careful.

Claude, Code, and What Comes Next

AI is speeding up how fast old technology becomes outdated—change happens faster now.

Ways of Thinking About Decisions

Mental models that help us make better choices under uncertainty

Think Bayes: Bayesian Statistics in Python

Update your beliefs based on new evidence—don't stubbornly stick to old assumptions.

Left and Right Are Over: The Future Is Up and Down

The old ways of thinking about the world are changing—new ideas flow in new directions.

Investment Decision Based on Entropy

Measuring uncertainty helps build portfolios that perform better in unpredictable markets.

Want to Learn More?

Switch to Detailed view to see the full academic research, or contact us to discuss how these ideas apply to your situation.