This week our guest is Taylor Pearson, Principal of Mutiny Fund, author of the book End of Jobs and the Interesting Times Newsletter. Our conversation is a summary of Taylor’s amazing blog posts such as: What is ergodicity, the Sand Pile Effect, Maginot Line, and Attractor Landscapes. He also tells us his investing journey and the origin story of the Cockroach Portfolio.
- [0:00] Who is Taylor Pearson
- [3:30] The Cockroach Portfolio
- [6:00] Ray Dalio’s All Weather Portfolio
- [11:00] Nassim Taleb’s Black Swan
- [13:30] What is Ergodicity?
- [18:00] The Ergodicity Problem in Economics
- [21:00] Sand Pile Effect: Stability breeds Instability
- [31:00] The White Moose Problem
- [33:00] Maginot Line: Soldiers are Prepared to Fight the Last War
- [43:00] The Beer Game
- [47:00] Attractor Landscapes
- [56:00] Driven by Compression Processing
- [1:02:00] More from Taylor and Closing Questions
If you like what you heard, make sure to follow Taylor on Twitter @TaylorPearsonME
Finally, a big thanks to the following sponsors for making the podcast a reality.
Mitimco
This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns in support of MIT's mission. To help the emerging manager community more broadly, they created emergingmanagers.org, a website for emerging manager stockpickers.
For those looking to start a stock-picking fund or just looking to learn about how others have done it, I highly recommend the site. You'll find essays and interviews by successful emerging managers, service providers used by MIT's own managers, essays MITIMCo has written for emerging managers and more!
Quartr
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Tegus
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TIKR
TIKR is THE BEST resource for all stock market data, I use TIKR every day in my process, and I know you will too. Make sure to check them out at TIKR.com/hive.
