Introductions:
Warren Buffett is one of the world's most legendary investors. But did you know that one man has beaten Buffett for 30 years in a row. He was neither in the spotlight nor did he give many interviews. That man's name is Jim Simon and his story is completely different. Buffett the long term legend. Buffett conquered the stock market with a simple formula. Value investing - buying good companies at cheap prices and holding them for a long time. And he did this with so much patience and discipline that he became known as The Oracle of Om. His average return of almost 20% CAGR, that too in a career of more than 60 years, is absolutely legendary. These numbers are so consistent that he became the goat of investing. Jim Simon the Quiet Quant. Now let's talk about Jim Simon who was a mathematician, a code breaker. During the Cold War, he decoded secret Russian codes for the US government. PhD in Mathematics and Professor in top universities. But then he decided to decode the patterns of the market. The logic was simple. If there is any pattern in the stock market, then it can be caught by math. And this is where Resonance Technologies starts. Renaissance Technologies' flagship fund was Medallion Fund and this fund was exclusively for employees and insiders. The public was not allowed to invest. Now listen to the shocking part. Metal lion Fund gave around 66% annual return before fees and around 39% CAGR after crazy fees. 5% management plus 44% performance fee. If we compare, Buffett around 20% over decades and Simon nearly double after fees for three decades. But this comparison is of value vs profits. Two different schools of investing with two brilliant but different approaches. Buffett says don't try to time the market. Whereas Symes' models say track every micro move. Buffett believes in fundamentals and Symes trusts in statistics and signals. Both were right but Symes' model was faster, more precise and scalable. So friends, whatever we have discussed till now, you can see its recap on your screen. The Mystery and Secrecy. Jim Symes' team had only mathematicians, physicists and coders. No traditional trader.
And his model was so secret that no one could know the exact formula. It was Wall Street's most secretive fund. Wall Street called it The Black Box and the returns out performed in every bull and bear market. Whereas Buffett is the goat but Symes was the quiet genius. Jim Symes silently cracked the behind the scenes market like a science experiment. Symes showed that if investing is an art, then that art can also be conquered with maths. And yes if you want to understand the market a little more mathematically then
there are many tools available. Like Studyiq52.blog's Algo trading tools which analyze the market data for you and help you in taking decisions without emotions with discipline. Of course not like Sims's black box. But definitely a step towards smarter data backed trading. So if you like such legendary investing stories then do like the Blog and share it with your family and friends. Do not forget to Follow to the Site and tell in the comment which side are you on between Buffett vs Sims? Investments in the securities market
are subject to market risk. Read all related documents carefully before investing.
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