Research note

The Art of Prediction

The Art of Prediction will soon be published in both Korean and English.

The Art of Prediction

ContentsTHE ART OF PREDICTION
PART 0

Foreword

00

Prologue

In the age of AI — what will we make a living from?

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PART 1

Reading the Market's Signals

01

Follow the Interests

Identify the decision-makers first · Write down their gains and losses · Judge whether incentives are aligned or in conflict

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02

Weighted Trust — GIGO in the AI Era

Classify your sources — primary data, secondary citation, or AI summary? · Check the interests behind them · Ask about skin in the game

03

The Consensus Trap

Short, medium or long term — which are you looking at? · Check second-order effects · Measure the gap between consensus and fundamentals

04

A Balanced Perspective

Deliberately write one line of opposing data · Doubt the smoothest story first · Give methodology for numbers, ranges for language

05

Idea Meritocracy

Separate ideas from people · Evaluate decisions apart from outcomes · Keep a live-testing journal of assumptions at decision time

06

Cycles — History Repeats

Identify where you are in the cycle · Find the closest historical rhyme · Write down the decision that goes against everyone

PART 2

Tools for Thinking

07

Intuition as Data AI Cannot See

Don't let a signal slip — write it down in one line · Ask whether it is an asset or a trap · Check it against other eyes

08

Being Wrong but Successful — Bayesian Thinking

Record your priors · Update the moment new information arrives · Is it a one-way door or a two-way door?

09

Prepare for the Black Swan

Cut sunk costs · Check for true diversification · Build reserves on the far side of efficiency — just-in-case

10

Beyond the Summary

Ask for assumptions before conclusions · Trace every word and every number · Treat the absence of data as data

11

When Context Beats Logic

Identify the cultural context · Stretch the view across 40, 50, 100 years · Measure the gap with rational judgment

12

It's Still a Human Call

Leave data collection to AI · Check weights and adjustments with domain knowledge · Stake your own reputation

PART 3

Closing

13

Epilogue

Closing notes from the desk — on turning a corner

14

Appendix

Commodities 101 · Glossary · Notes