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.

4 comments:

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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