A river in Egypt… – The best interest

Denial is a psychological defense mechanism in which the mind refuses to accept reality or facts to avoid painful emotions, fear or stress. It acts as an unconscious protective barrier, allowing individuals to ignore, minimize, or rationalize uncomfortable truths. While it sometimes provides temporary, adaptive coping, it often leads to harmful, persistent avoidance.

Charlie Munger wrote extensively about denial. Munger would share his personal anecdote about a family friend whose “super athlete son” disappeared while flying over the North Atlantic Ocean. Despite the sad reality of what clearly happened, the mother refused to believe her son was dead.

Denial affects us all. “I’m too smart for denial” is wrong. Those are smart people more sensitive deny because they are better at constructing justifications.

The investment world is full of denial. Investors use dreamy stories (“castles in the sky”) to describe (and deny) otherwise frothy, effervescent behavior. Collective denial becomes social proof that the irrational behavior is justified.

My anti-denial confession…

In an effort to confront my inner denial voice, I must confess:

AI scares me.

Not in a Terminator sense. At least not yet. I’m not afraid of SkyNet and cyborgs and total destruction. Maybe I should be?

I’m scared in a much more mundane, but perhaps just as existential sense.

I feel…replaceable in a way that I have never felt before. Not once.

AI is “commoditize” intelligence, much in the same way that Sunoco, Mobil and Shell commodified gas. I feel like a horse watching the Model T’s roll off the Ford assembly line.

Our human brains are personal sources of incredible uniqueness. What could be more unique than your thought process, your personality etc? My brain has been a major differentiator in my life. I am my brain. Assuming you like my work, whatever you do Real Enjoyment is my brain.

But my brain and your brain and all of our brains has new competition.

Competition is not new. I’ve always known it Morgan Housel And Jos Brown were writing there. They’re in the Hall of Fame for what I’m trying to do. And I am pleased there are other people I can emulate. I’m better at reading Morgan and Josh and everyone else.

But what happens when someone with an internet connection can “write” better than me, or Morgan, or Josh? What happens when AI can write? this article “better” than I can?

I aspire to many financial podcastersat. But soon, AI won’t do that alone to write better ideas and scripts than me, but even deliver those scripts in my voice. I don’t radiate charisma, but I hold my own. Doesn’t matter. AI will bury me.

AI will ‘teach’ better than me. Teaching is not easy. You need to have a strong “Theory of Mind” – the understanding of how other people’s minds work. I love teaching. But my “edge” in teaching will not last long for this world.

Then AI will of course be able to provide better financial planning than I can. AI accepts all the details a customer gives it. It won’t miss a second. It will ask Great follow-up questions. It will include everything. The bots will never forget it! They will keep each detail. And that’s great (for you, the “customer”). I am sure the final financial plan will be flawless.

But Jesse – AI can never replace your uniqueness! In particular, AI cannot imitate ‘human touch’ your human touch!

I hope you’re right. It would make me feel lot better. An overwhelming number of financial planners say: “I cannot be replaced. My human dimension is indispensable.”

Maybe that’s true. I certainly do heap it’s true. But I know how common denial is. For my own sake and for the sake of many other employees, I hope that AI is more of a friend than an enemy of the employee.

Otherwise, we’re all about to experience an existential moment.

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