We Study Billionaires - The Investor’s Podcast Network

chevron_right

TIP273: Billionaire Jim Simons' Quant Revolution w/ Gregory Zuckerman

Dec 15, 2019

Guest

Greg Zuckerman

Join bestselling author and Wall Street Journal reporter Gregory Zuckerman as he unpacks the incredible journey of billionaire investor Jim Simons. Discover how Simons achieved a staggering 66% annual return through his innovative quantitative trading strategies. Zuckerman dives into the nuances of making money with just a 51% accuracy rate and reveals why market inefficiencies may be fewer than value investors believe. Plus, he sheds light on the key differences between index funds and ETFs, offering valuable insights for investors.

39:33

forum

Ask episode

web_stories

AI Snips

view_agenda

Chapters

menu_book

Books

auto_awesome

Transcript

info_circle

Episode notes

question_answer

ANECDOTE

Jim Simons' Success

Jim Simons, a mathematician and code breaker, achieved a 66% annual return since 1988 with his Medallion Fund.
His secretive approach and remarkable success make him a fascinating figure in finance.

insights

INSIGHT

Simons' Diverse Talents

Simons' expertise extends beyond mathematics, including code breaking for the US government during the Cold War.
He later founded Stony Brook's mathematics department, showcasing his diverse talents.

insights

INSIGHT

Simons' Approach to Technical Analysis

Simons' geometric background influenced his early technical analysis approach, seeking patterns in market data.
He viewed the market as having underlying structure, contrary to the random walk theory.

Get the Snipd Podcast app to discover more snips from this episode

Jim Simons and the Evolution of Quantitative Trading

05:39 • 13min

chevron_right

The Medallion Fund's Winning Strategy

18:12 • 8min

chevron_right

Strategic Trading Insights and Innovative Solutions

25:46 • 4min

chevron_right

Algorithmic Innovation at Renaissance Technologies

30:01 • 7min

chevron_right

Understanding Index Funds vs. ETFs: A Comprehensive Guide

37:12 • 6min

chevron_right

#62

• Mentioned in 136 episodes

The intelligent investor

Jason Zweig

Benjamin Graham

Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.

#1492

• Mentioned in 16 episodes

The Man Who Solved the Market

How Jim Simons Launched the Quant Revolution

Greg Zuckerman

This book tells the gripping story of how Jim Simons, a world-class mathematician and former code breaker, mastered the financial markets. Simons' firm, Renaissance Technologies, achieved unprecedented success with its Medallion fund, generating average annual returns of 66 percent since 1988. The book, based on unprecedented access to Simons and his team, details how Simons hired mathematicians, physicists, and computer scientists to develop algorithms that identified deeply hidden patterns in market data. It also explores how Simons' success extended beyond finance, influencing scientific research, education, and politics. The narrative highlights the collaborative nature of Renaissance Technologies and the significant impact its methods have had on various industries and society at large.

On today’s show we talk about billionaire Jim Simons and how he achieved a 66% annual return since 1988. We have Best Selling author and Wall Street Journal reporter, Gregory Zuckerman, on the show.

IN THIS EPISODE YOU’LL LEARN:

How Jim Simons’ fund has performed 66% annually since 1988.
How to make money when you’re only right 51% of the time.
Why there are fewer inefficiencies in the market than value investors think.
Ask The Investors: What is the difference between index funds and ETFs and what is the better investment?

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Gregory Zuckerman’s book, The Man who Solved the Markets – Read reviews of this book.
Tweet to Gregory Zuckerman.
Email Gregory Zuckerman.
Sign up to the TIP live event in Los Angeles with Stig and David by emailing stig@theinvestorspodcast.com.
Join the Mastermind Group and the TIP Community for the Berkshire Hathaway Annual Shareholder’s Meeting.

NEW TO THE SHOW?

Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

Bluehost
Fintool
PrizePicks
Vanta
Onramp
SimpleMining
Fundrise
TurboTax

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Home Top podcasts Popular guests Top books