Khushboo Goyal’s Post

This is Jim Simons. The mathematician who outperformed Warren Buffett for 36 years. Here's the story of the man who cracked Wall Street: Jim Simons is a name that might not be as well-known as Warren Buffett, but his achievements in the world of finance are unparalleled. He was born in 1938 in Brookline, Massachusetts, to a middle-class Jewish family and demonstrated an early aptitude for mathematics. By the age of three, he was already solving complex problems, unknowingly engaging with concepts like Zeno's Paradox. His love for mathematics guided his academic journey. After high school, he attended MIT, where he initially struggled but soon thrived after dedicating a summer to mastering complex theorems. His academic prowess earned him a PhD from Berkeley in just two years and a teaching position at Harvard by his mid-20s. In 1964, he joined the Institute for Defense Analyses (IDA) at Princeton, where he applied his mathematical skills to cryptography, working on breaking Soviet codes during the Cold War. This role was both challenging and lucrative, allowing him to hone his skills in pattern recognition and algorithm development. However, his outspoken opposition to the Vietnam War led to his dismissal from the IDA. He returned to academia briefly but soon found a new challenge in the world of finance. In 1978, at the age of 40, he founded his first hedge fund, Monemetrics, which later became Renaissance Technologies. His approach to trading was revolutionary: He used mathematical models to analyze market patterns, moving away from traditional methods that focused on company fundamentals. Renaissance Technologies' flagship Medallion Fund is legendary in the financial world. From 1988 to 2018, his hedge fund achieved an average annual return of 66% before fees (39% after fees), amassing total profits of over $105 billion. This success comes from assembling a team of mathematicians, physicists, and computer scientists to continuously refine their trading algorithms, leveraging vast amounts of data and cutting-edge computational techniques. Simons' contributions extend beyond finance. With his wife Marilyn, he founded the Simons Foundation, focusing on advancing research in mathematics, physics, life sciences, and autism. --- Looking for investing strategies powered by real world insights? Head to Surmount — we're making the best strategies available to everyone.

Remembering Jim Simons: The man who solved the market. I bid farewell to Jim Simons, a pioneer who brought mathematical precision to the financial markets. His innovative spirit and contributions will continue to inspire. Today, I want to share the inspiring journey of this mathematical genius who revolutionized the way we think about markets and trading. Jim Simons started as a math teacher and worked for the government, cracking codes. But he didn't stop there. He had a big idea to use math to win in the stock market. In 1978, Jim started his own company, Monemetrics, which later became Renaissance Technologies. He tried the usual ways of picking stocks, but it was a rollercoaster ride. So, he decided to do things differently. He brought together a team of math wizards, not just business folks, to find patterns in the market that no one else could see. Jim's team used powerful computers to crunch numbers and find these secret patterns. This way, they made decisions based on data, not feelings. And it worked! His Medallion Fund became one of the most successful hedge funds in history. Its secretive and highly successful trading strategies, has achieved an average return of 66% annually over three decades. These returns are even better than the returns of Warren Buffett's holding company Berkshire Hathaway. Jim's work shows us that sometimes, thinking outside the box and using what you're good at can lead to amazing things. He's not just a smart trader, he has also given a lot to science and education. His story is a reminder that knowledge and a fresh perspective can make a big difference. #jimsimons #rip

Sad to hear of the passing of Jim Simons. While a lot of conventional wisdom is often about modern portfolio theory and investing long-term trying to beat the index, Simons found a different way through quantitative models and algorithms. Returning more than 50% for 30+ years is insanity when you consider the nature of leveraged positions. However, Simons found a way to do this with relatively lower risk and built a team of specialists in non-finance backgrounds. The question is, what can we learn from this money-making machine that was built? 1) Specializing and generating disproportionate returns involves deep learning. I see a lot of budding traders and investors romanticizing such returns yearly but ending up with negative returns. We must remember this fund was created when Simons was 50 with tremendous background research and influence. 2) Returns don’t come quickly. Simons mentions how he started trading in his 30s and found some success and spent significant time understanding his process and making it scalable. 3) Sticking to your strengths. Closing the main fund to outside investors and factoring in how a particular size was optimal to sustain returns can’t have been easy. Imagine saying no when people are lining up to invest. 4) Resilience during adversity. He lost his son Paul in 1996 and his son Nicholas in 2003. Never easy for a parent. Given what we’re seeing with the current macroeconomic situation, always remember that Simons realized his fortune past his 40s and is an inspiration for all of us. While many of us may take more time to realize what we see as success, fear being constantly disrupted and struggle for opportunities, we need to remember that persistence and deep learning will definitely be ultimately rewarded down the road!! #Trading #Investing #growth #assetmanagement #returns #inspiration #quant #quantitative #hedgefunds

🚀💼 Conquering the Equity Market Maze! 💥📈 Today, amidst the chaos of the stock market battlefield, I had an epic showdown with my mentor, the wise Sage of Finance. As a battle-hardened MBA Finance student, I've often questioned whether the traditional methods of stock valuation could stand up to the challenges of the dynamic Indian market. But lo and behold! In the heart of our clash, my mentor unveiled a secret weapon: the power of narrative in financial analysis. Beyond the realm of spreadsheets and formulas, lies a universe where numbers merge with stories, and where past glories do not always predict future victories. My mentor's wisdom echoed across the battlefield: "True financial analysis is not just about crunching numbers; it's about deciphering the tales woven within the market's fabric. Yes, historical data holds clues, but it's our ability to read between the lines that separates the heroes from the zeroes." Armed with this newfound insight, I embarked on a quest to uncover the hidden treasures of the market. Like a financial superhero, I soared through the clouds of uncertainty, uncovering diamonds in the rough and decoding the mysteries of market dynamics. So, fellow financial warriors, let's don our capes of curiosity and wield our swords of critical thinking. Together, we'll navigate the treacherous waters of the equity market, armed not just with formulas, but with the power of narrative and intuition. For in this epic saga of finance, every hero has a role to play, and every decision is a battle for glory. Are you ready to unleash your inner financial superhero and conquer the equity market maze? 💼💪 #FinancialSuperheroes #EquityWarriors #MarketMasters #SuperheroFinance #FinancialAnalysis

Learnings from Investment legends Charlie Munger ●Be the learning machine, everyday before going to bed think if you have become little wiser ●The best business to be in is one that everybody understands. ●It's remarkable how much long-term advantage people like us have gotten by trying to be slightly less wrong than the crowd. Warren buffet ●Price is what you pay. Value is what you get. ●Risk comes from not knowing what you're doing. ●The best business to be in is one that you know. ●Invest in businesses not in stocks Mohnish Pabrai ●Investing is the intersection of economics and psychology. ●You can be wrong 40% of the time in investing and still make money. ●It's not about the great business, it's about the great investment. ●The best business to be in is one that you can understand and that you can hold for a long time. The market is a device for transferring money from the impatient to the patient. #TaxilaStudent #learningexperience #investimentos

The future of investing is here, and it’s all about removing emotions from the equation. Discover how quantitative, non-emotional approaches are transforming mutual fund investing, aiming to optimize portfolios through mathematics and discipline. Check out our full article and see how embracing a mathematical mindset can lead to long-term success. Read It Now -> https://ow.ly/W7He50SxX2W

When you get out of the modern short ways and do more of what is required , you enjoy it. "outcome can compound any day in your life..it doesn't has to show once you read something" I didn't know anything in 2021, only was sure that stock market is my thing since the backend things of investing ( which are in list) is what i liked ....but didn't know how to proceed except for watching stock prices daily🤣🤣. Today, i have a solution and source for everything which comes my way..🤩 Still, always be humble in stock market..and i simply do believe that i know only 20% of stock market...I also know people doing wonders and know ample things in this space..so the benchmark will always be very very high.. Equity research can be very tiring.. you have to learn delayed gratification in order to succeed in this. you have to use you weekends. one good news for all is- learning each and every small part of this space, you just have to be a self learning machine, no big degree required...yes it can give you edge and help you process things faster , rest anyone can do this for sure provided doing in a real way and sirf charts leke nai baithe toh.. The passion just keeps growing in this, and the more you learn various things, i realised that the real research is when you put in 10-15 hours behind one company, still things are not covered... ..so if someones can do in minutes, stay away from him/her.. You have to learn from all the biggies and good ones, but form your own approach in order to have proper peace of mind. emotions are biggest barrier than knowledge in stock markets.. Rest, i would say investing is an individual sport, Everyone is doing it, but when it comes to decision making and application of research, it has to be an individual sport. last bull run thodi hai. agle bull run mei ban jayga. iss baar kaafi miss hua since the learning process was going on WHAT WORKS FOR YOU IN INVESTING?? HERE IS MY WAY👇👇.... ( over and above this, position sizing, risk management and behavioral finance are more important things) #equityresearch #toolsforlife #investinginsights #finance #stockmarket #linkedingrowth

📈🤓 Market Insights 🤔📉 When it comes to navigating the complex world of investing, it's not simply "The Bull" vs. "The Bear." 🐃🐻 It's a battle between the EDUCATED 📚💡 and the UNEDUCATED🤷♂️🤷♀️. In this ever-changing financial landscape, knowledge is power. Those who take the time to understand the markets, do their research and make informed decisions are the ones who ultimately succeed. They're not driven solely by emotions but by a deep understanding of the game. On the other hand, the CLUELESS are easily swayed by headlines, panic selling, and market noise. They gamble instead of investing, hoping for quick wins without a strategy. 🎲 So, which side are you on? Are you part of the EDUCATED few who patiently analyze and adapt, or are you among the CLUELESS, making decisions without a solid foundation? 🤓💰 Invest wisely, invest in your trading education. Learn the right strategies, the right tool, and the right mindset. 🌟 You can start here: https://loom.ly/lH2NPMc #MarketWisdom #InvestSmart #KnowledgeIsPower 📊🔍

Don't think a poem could be written about successful investing and behavioural biases? Think again. AI in action with a simple prompt produced this little gem first time of asking: In the realm of stocks and gold, Where fortunes are bought and sold, Success is not just by the brave, But those who know how waves behave. For the market, she's a fickle friend, Moving in ways we can't comprehend, But those who rise, to riches amassed, Know the future isn't just the past. It's easy to chase a rising star, Or sell when things seem bizarre, But the wise, they hold their stance, And don’t just leave success to chance. The allure of herd, so strong it seems, Drowning the voice of one’s own dreams, Behaviour biases, ever so sly, Making bulls run and bears sigh. "Buy low, sell high", the age-old creed, Sounds simple, yet hard to heed, For when the market's mood is dire, Greed and fear light the fire. Confirmation, overconfidence too, Biases that skew the investor’s view, Yet those who win, time and again, Master their minds, break the chain. So as you tread the investing path, Aware of bubbles, bears, and wrath, Remember this, the golden key, Is to think clear, and let biases be. For in this game of risk and reward, It's not just money that’s stored, But lessons of life, and of the soul, That make an investor truly whole.

7 books that will fast-track your learning journey as a macro investor. 1️⃣ Pragmatic Capitalism by Cullen Roche Pragmatic Capitalism from Cullen Roche concisely goes through the different forms of money in an understandable way. Must read. 2️⃣ Debunking Economics by Steve Keen Prof. Keen shutters the foundations of Neoclassical Economics and amazingly describes the differences between private & public debt and how credit creation can lead to non-linear events like financial crisis. 3️⃣ The Holy Grail of Macroeconomics by Richard Koo Richard Koo walks you through the dynamics of the balance sheet recession which unfolded in Japan in the 1990s, and it covers many more important macroeconomics fundamentals. 4️⃣ Alchemy of Finance by George Soros If you ever wondered what principles, analysis and risk management techniques Soros applied throughout his money management career...this book will provide with plenty of these global macro investing jems. 5️⃣ + 6️⃣ Inside The House of Money by Steve Drobny and Market Wizards by Jack Schwager Inside The House of Money from Steve Drobny: an amazing series of interviews to the best hedge fund managers of the last decades. Incredible teachings on frameworks and risk management by the best money managers in the world! Market Wizards is another great book along the same lines. 7️⃣ Alpha Trader by Brent Donnelly Alpha Trader from my friend Brent Donnelly is a must read. When you get the chance to follow the thought process and risk management of somebody who has successfully traded for large banks and HFs...you should take the chance. And he writes well. Really well. Take time to read these books: they will turbocharge your journey to become a better global macro investors! ❗ Macro volatility will dominate markets over the next decade ❗