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samuelfernandezlorenzo.com

Global thinking for a complex world
I discuss theories of deep understanding, with applications in quantitative finance, AI, or physics.
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AI Bubble, explained with a map of understanding
The Numbers That Don't Add Up Imagine someone spending $100,000 to set up a business that only generates $10,000 a year. Normally this would be a red flag that would make more than a few people rethink the business model. But this is, on a much more epic scale, what's happening right now in the AI sector. In 2025, global investment in AI infrastructure will reach $558 billion dollars . It's a dizzying figure. To put it in perspective, it's more than the GDP of entire countrie

Samuel Fernández Lorenzo
Dec 104 min read


Global Thinking: Portfolio Investment Strategy with Quantum Optimization
Did you know that if you had invested $100 in the 'Magnificent Seven' (Nvidia, Apple, Microsoft, Google, Tesla, Meta, and Amazon) a decade ago, today you would have more than $4,400? Tempting, indeed. So why not concentrate your entire equity portfolio in that sector? However, as Vanguard wisely points out in a recent article : " You can always find some asset that outperforms your diversified portfolio " (Why not invest in NVIDIA instead of the magnificent seven?). This over

Samuel Fernández Lorenzo
Sep 235 min read


How Investment Analysts Reduce Complexity in 2025, but Not Optimally
Financial analysts and investment managers constantly face complex, high-dimensional data sets (and if you're reading this, you've probably experienced a similar problem). To handle this complexity, they often resort to dimensional reduction techniques, but frequently confuse methods that have fundamentally different purposes . Let's examine this. The Analyst's Dilemma: Simplify Without Losing Key Information In this article, I'll analyze two common approaches: principal com

Samuel Fernández Lorenzo
Sep 165 min read


Why GPT-5 disappoints: the myth of artificial superintelligence (ASI)
If you believe that artificial superintelligence is just around the corner, capable of surpassing us in everything we do, you might be wrong. Inspired by the evolution from Paleolithic to Neolithic art, I realized that true advances don't come from doing more of the same, but from seeing the world in a completely new way. What if superintelligence isn't about being the best at everything, but about revealing connections that humans cannot imagine yet? The evolution of human u

Samuel Fernández Lorenzo
Sep 104 min read


How to Use AI to Discover Interdisciplinary Connections: An Alternative Approach to Learning
Did you know that Albert Einstein played the violin and attributed part of his creative thinking to music? He once mentioned: "If I was...

Samuel Fernández Lorenzo
Sep 45 min read
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