5/ Example of Great AI Company: Stitch Fix

Defensible Data: Personalized style data from previous $SFIX orders

Problem Solved: Predict what customers will want/not want

Moat: Only $SFIX has access to its data. This makes the product better for everyone

Here's @bgurley's take:
6/ The 4 Quadrants of AI Application

AI has four unique stages of industry application:

1) Transition: high penetration + low scale
2) Germination: low penetration + low scale
3) Growth: low penetration + high scale
4) Developed: high pen/scale

source: Deloitte white-paper
7/ Which Industries Fit In Each Quadrant?

Deloitte has a killer chart showing which industries fall in each quadrant (see below).

We're (@MacroOps) focusing on these four industries:

1) Retail
2) Healthcare
3) Education
4) Finance

Let's highlight the first two ...
8/ AI In Retail: All About Customer Stickiness

Today's customers buy for different reasons than their parents.

AI can help track & predict a consumer's interest and optimize shelf space.

@packyM said it perfectly in a recent @notboringclub essay too: notboring.substack.com/p/software-is-…
9/ AI In Retail Company Example: Geohey

AI can also help retailers find the best location for their stores.

If @GavinSBaker is right on the importance of omni-channel (which we think he is), Geohey becomes very valuable.

The company's model predicts optimal store locations.
10/ AI In Healthcare: 3 Main Drivers

Deloitte distilled AI's application to three areas:

- Health Management
- Medical Imaging
- Diagnosis & Treatment

How AI Helps:

- Teledocs
- Cancer screenings
- Personalized Medicine

AI algorithms get better with more reps, no burn-out.
11/ Wrapping Up

Next week we'll look at two other Industries:

- Education
- Finance

AI is doing amazing things in these areas and we're in the first inning of this game.

We hope you enjoyed this thread!

Check us out over at @MacroOps:
macro-ops.com

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More from @marketplunger1

5 Nov
[THREAD]

Artificial Intelligence (AI) is one of the most attractive & exciting spaces in the investment universe.

The potential moats, business models and solutions are tantalizing.

Here's what makes a Great AI company, and where we can find them 👇
macro-ops.com/great-ai-compa…
1/ What Makes A Great AI Company?

Will Vorheis wrote a great piece on this. It boils down to one thing:

- Data Dominance

What this means: A company has a virtual monopoly on the data it needs to train its model

Remember: The best data = the best model = better data/model
2/ AI Companies Need The Right Data

Data for data's sake isn't enough. To create a *true* moat you need the *right* kind of data. Defensible Data!

Defensible Data has two factors:

- It's specific (the more niche the better)

- Solves an actual problem (not a theoretical one)
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3 Nov
[THREAD]

I loved @ARKInvest 2020 Bad Ideas Report.

Great way to red-team conventional "value-based" ideas.

Here's the 5 Bad Ideas:

1. Physical Banks
2. Brick & Mortar Retail
3. Linear TV
4. Freight Rail
5. Traditional Transport

source: bit.ly/3l0FXQw

Let's learn Image
1/ Physical Banks

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What's better: "In contrast, digital wallets are acquiring millions of customers at a cost 98% lower than that for banks" Image
2/ Brick & Mortar Retail

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to fall as e-commerce takes share. Roughly
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What's better: E-commerce Image
Read 7 tweets
29 Oct
COVID has caused global indices to post poor YTD returns:

- FTSE 100: -26%
- Nikkei 225: -1.37%
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Yet one index is just crushing it:

- Japan's Mothers Index: +37%

It's one of the most under-fished corners of the market.

Let's learn 👇

macro-ops.com/japans-mothers…
1/ What is The Mothers Index (MOS)?

- The name stands for "Market of the high-growth and emerging stocks.

- It's venture capital-type companies in public markets.

- These are SMALL biz (@iancassel enters chat) w/ average market cap of $10M USD

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What gets me excited about the MOS is the type of companies available.

Most companies on the MOS involve one of the following:

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No wonder its up 40%!
Read 12 tweets
22 Oct
Murata (6981) is the world’s largest producer of multi-layer ceramic chips (MLCCs) with over 40% market share.

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Here's what you need to know 👇
macro-ops.com/murata-manufac…
1/ The MLCC Demand Boom is Coming

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Here's what MLCCs do ... ImageImageImage
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There's three reasons Murata will win ...
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17 Sep
[THREAD]

GoodRX $GDRX filed their S-1 earlier this week.

I read It so you don't have to (but you should).

Here's a thread on what I found interesting, fascinating and down-right incredible from the company.

I'm starting at zero: sec.report/Document/00011…

cc: @saxena_puru
1/ High-level Facts & Figures:

- #1 most downloaded medical app

- 4.9M Monthly Active Users

- 80%+ Repeat Activity

- $20B+ in Consumer Savings

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- 4 platform offerings

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Mission: To help Americans get the healthcare they need at a price they can afford.

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Read 19 tweets
24 Aug
[THREAD]

Unity (prop ticker: $U) filed their S-1 this AM.

I read the filing so you don't have to (but you should).

Here's a thread on what I found interesting, fascinating and down-right incredible from the company.

I'm starting from zero.

Join me: sec.report/Document/00011…
1) High-level Facts & Figures:

These high-level stats impressed me (cc: @ballmatthew ):

- 1.5M monthly active creators

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2) Business Overview

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Power to the creators.
Read 23 tweets

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