Hedge Fund King Ken Griffin: Why AI Isn't the Market-Beating Secret

Ken Griffin, the big boss of Citadel, recently shared his thoughts on AI at a big finance conference. While many on Wall Street are excited about using AI to pick stocks, Griffin isn't convinced it's the magic solution. He said AI can help with some tasks, but it's not great at finding those special stock picks that beat the market. Griffin's own investment firm, Citadel, has been doing really well without relying on AI. Over the past three years, Citadel's top 20 stock picks have more than doubled in value, way outpacing the broader market. So, what's Citadel's secret? Griffin says it's all about good old-fashioned stock picking and managing risk. The firm's biggest investments are in solid companies like JPMorgan Chase, Amazon, and Home Depot. These aren't flashy tech stocks, but well-established businesses. Even when Citadel does invest in tech giants like Nvidia and Microsoft, it's not because of the AI hype. Instead, it's because they believe in the company's fundamentals. Griffin's approach seems to be working, with Citadel's top stocks delivering impressive returns. In short, Griffin's message to Wall Street is clear: don't get too carried away with AI. For now, human intuition and discipline are still the keys to success in the market.