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Have you ever heard of Jim Simons? Agree one of the best investors in modern history Would it be an exaggeration to say that? Of course not. How
Have you ever heard of Jim Simons? Agree one of the best investors in modern history Would it be an exaggeration to say that? Of course not.
How can math genius Jim decipher markets better than economists? Now this is all together ‘The genius of financial markets’ Let’s investigate.
An investor is a person who builds a portfolio for himself or his company, especially with shares on the stock exchange, and uses the capital he owns. taking risks People trying to increase it. Sometimes they can perform alone, sometimes as a group.
To be a good investor, it is actually necessary to get an education in this field. So much so that the world famous investor Warren Buffett studied business administration. Another famous investor, Peter Lynch, had a master’s degree in business administration. But the Jim Simons we’ll be talking about today is a little different from them.
He was born in 1938 in Brooklyn, USA. He loved reading books, but that’s what he really did His interest was in numbers.. He divided numbers backward by two, multiplied them by two, and performed operations in his head. His family considered him a genius. And so it was.
Despite everything, his family did not care about his interest in mathematics and wanted him to become a doctor, but he wanted to study at MIT (Massachusetts Institute of Technology) and teach there. And so it was. He received his PhD at the age of 23 and He taught at MIT.
Jim, who stood out for his intelligence and for his view of life from a mathematical perspective, also taught at Harvard. The period in which he taught coincided with the Cold War. That’s exactly why he had to crack the Soviet codes. At the Institute for Defense Analyses was called.
In his interview with TED entitled “The Mathematician Who Cracked Wall Street | Jim Simons,” Jim explained this work: “Actually, they didn’t exactly name it. An operation where they hire mathematicians to crack secret codes and the like There was. They paid a lot of money. So it was an overwhelming job.” he explained.
He started working without any experience. fast code cracking algorithm developed. Again, in his interview with TED, he said that they only spend half their time breaking codes and developing algorithms, while the other half is free and free. He spent his spare time exploring the world of finance.
As he continued to break the codes, he began to disagree with people at work about the Vietnam War. He explained this in his TED interview by talking about his bosses. Because the bosses are war supporters and because he thinks war is stupid He said he gave an interview to Newsweek Magazine and was fired exactly five minutes after hearing about it.
After being fired, a founded Monemetrics, a hedge fund management company. He decided to think mathematically instead of conventional methods to unravel markets and their patterns. To find the password of the markets, you need to use mathematical knowledge and perspective. A system had to be developed. For this reason he first started collecting computers.
He wanted to set up a system that would be entirely based on quantitative analysis. For this hired programmers, mathematicians, physicists and cryptographers and formed his team. With this team he collected large amounts of historical data from the World Bank, stock markets and exchange rate data and transferred them to computers. While other investors focused on immediate changes, Jim thought about seeing and analyzing the mathematical part of the business. Because these markets had to have a logic.
The large data storage space and live tracking system gave his team access to information that no one else could. Thanks to Jim, the team put everything into math and science and ultimately fat develop secret automatic strategies based on mathematical and statistical models He succeeded.
Medallion Fund from 1998 to 2018, before fees 66% annual return reached legendary investors and outperformed. This percentage was updated to 71.8% in 2014. Good Profit over 100 billion dollars was obtained.
All investors wanted to get into the fund, which made a very high profit. But this fund is currently alone to business owners, company employees and some select investors is opened.
Jim acquired a large fortune thanks to his great knowledge of mathematics and, more importantly, because he was a ‘mathematical genius’. According to data from Forbes He has a net worth of $28.1 billion. This wealth puts him on the list of the richest people in the world. during the 49th It’s laying down.
With his wife in 1994 He founded the Simons Foundation and donated $2.7 billion of his fortune to it.. The foundation’s goal is to support education, health care and autism research. In addition, the goal in 2004 was to develop mathematics and science teachers. founded Math for America.
So his wealth; In addition to mathematical knowledge, financial skills and intelligence be a helpful person It also leads the way with. Considering all this, communities see no problem in calling him the best investor ever.
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Alice Smith is a seasoned journalist and writer for Div Bracket. She has a keen sense of what’s important and is always on top of the latest trends. Alice provides in-depth coverage of the most talked-about news stories, delivering insightful and thought-provoking articles that keep her readers informed and engaged.
