Instagram Algorithm

The Instagram algorithm may be the smartest fund manager ever.

When I press the search button on the bottom left of the Instagram app, I mostly get three types of posts- my favorite football team, favorite actor, and fitness related.

The algorithm read that these are my favorites by the number of clicks/views I have had on such posts over time.

Sometimes, I want to see posts of the football team only.

One might think that I am likely to get more of the football team posts as I keep clicking such posts and scroll down looking for more of it.

But Instagram shows more posts of my other favorites.

It diversifies its risk.

If I'm allowed to see only posts of the football team like I want to, I might lose interest in Instagram when the football team performs poorly on a given matchday/season.

Instagram can't afford it.

Like a diligent fund manager who spreads the customer's investment on the different funds based on the investment policy statement decided by the customer, the algorithm sticks to the number of posts based on the customer's favorites. Neither more nor less.

One difference is the obligation. The fund manager has the fiduciary responsibility to act in the best interest of his/her customers.

But, Instagram, we'll never know.

Orginally published on LinkedIn