Tuesday, July 08, 2014

James Simons: Mathematics, Common Sense, and Good Luck

A great MIT colloquium by Jim Simons (intro by I. Singer). Interesting discussion @28 min about how Simons (after leaving mathematics at 38) became an investor. Initially, he relied both on fundamental / event-driven analysis (reading the newspaper ;-) as well as computer models. But Simons eventually decided on a completely model-driven approach, and the rest is history.

@38 min: on RenTech's secret, We start with first rate scientists ... Great infrastructure ... New ideas shared and discussed as soon as possible in an open environment ... Compensation based on overall firm performance ...

@44 min: Be guided by beauty ... Try to do it RIGHT ... Don't give up and hope for some good luck!

@48 min: a defense of HFT ... the cost of liquidity?

@55 min: world's greatest investor is a Keynesian :-)

@58 min: brief precis of financial crisis ... See also here.

See also Jim Simons is my hero.


Shawn said...

Simons is obviously accomplished it, but how much of it is truly earned when one is given such genetic endowments? Hypothetical.

James Hedman said...

He might sound like a Keynesian at 55 minutes (and earlier) but at 58 minutes he describes a classic Austrian School debt fueled speculative asset bubble in housing.

Richard Seiter said...

NYT article on Simons: http://www.nytimes.com/2014/07/08/science/a-billionaire-mathematicians-life-of-ferocious-curiosity.html

(new site) Economics Institute said...

haterz gonna hate

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