My Top 10 Highlights from?the book
- “I realized I might not be spectacular or the best, but I could do something good. I just had that confidence,”
- “Bad ideas is good, good ideas is terrific, no ideas is terrible.”
- A technology expert he’d hired to invest in stocks, and shared a new goal: building a sophisticated trading system fully dependent on preset algorithms that might even be automated. “I don’t want to have to worry about the market every minute. I want models that will make money while I sleep,” Simons said. “A pure system without humans interfering.”
- “It’s so much easier making millions in the market than finding mathematical proof.”
- “The name of the game is not to always be right, but to be right often enough.”
- “I don’t know why planets orbit the sun,” Simons told a colleague, suggesting one needn’t spend too much time figuring out why the market’s patterns existed. “That doesn’t mean I can’t predict them.
- Simons pressured his investors not to share any details of the operation. “Our only defense is to keep a low profile,” he told them.
- A few things from his hires. They needed to be supersmart, of course, with identifiable accomplishments, such as academic papers or awards, ideally in fields lending themselves to the work Renaissance was doing. "We can teach you about money, We can’t teach you about smart.”
- Simons used compensation to get staffers focused on the firm’s overall success. Every six months, employees received a bonus, but only if Medallion surpassed a certain profit level. The firm paid some of the money over several years, helping to keep the talent around. It didn’t matter if staffers uncovered new signals, cleaned data, or did other lower-profile tasks; if they distinguished themselves, and Medallion thrived, they were rewarded with bonus points, each of which represented a percentage of Renaissance’s profit pool and was based on clear, understood formulas.
- “You want a bigger bonus? Help the fund get higher returns in whatever way you can: discover a predictive source, fix a bug, make the code run faster, get coffee for the woman down the hall with a great idea, whatever?.?.?. bonuses depend on how well the fund performs, not if your boss liked your tie.”
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5 个月I love the idea that math is more reliable than intuition!
Entrepreneur
1 年There is no 'a magic wand' to apply all situations. Every problem is different. Every issue require different approach... Stories of successes in business or in history always point to the leaders who rose to the occasion in the right way. Actually they are not the leader in the sense of leading people but they are always the people who led the occasions and processes right and efficient way.. Examples: Linux and Karaalioglu did not lead the people but led the occasions and processes very well.