From Yahoo Finance: 2025-06-21 12:29:00

Howard Marks used an AI tool, Perplexity, to help write his latest memo on how regulations have distorted California’s fire insurance market, reducing coverage. Marks, a billionaire co-founder of Oaktree Capital Management, included insights from Warren Buffett and emphasized free-market economics in his argument against government intervention in the insurance sector. He cited the impact of regulations on insurers’ ability to price policies accurately. Marks also highlighted the limitations imposed on insurers, which resulted in underinsurance and questioned the practicality of covering high-risk properties under such constraints. The use of AI tools like Perplexity in financial analysis and decision-making is a topic of debate, with proponents touting productivity gains and critics expressing concerns about job displacement. Despite incorporating AI technology into his work, Marks still values human wisdom, quoting Buffett on the unsustainable US fiscal deficit. Additionally, he shared his colorful commentary on the current state of fiscal affairs in Washington. Marks, known for his skepticism of high-flying assets, has shown openness to innovation, evolving from dismissing bitcoin to acknowledging its benefits and exploring the potential of AI in his work. Warren Buffett has praised Marks’ memos, highlighting the valuable insights they provide to the financial community.



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