Founders
Episode 108 #108 Jim Simons (Money Printer)
Founders

Episode 108: #108 Jim Simons (Money Printer)

Founders

Episode 108

#108 Jim Simons (Money Printer)

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading The Man Who Solved The Market: How Jim Simons Launched The Quant Revolution by Gregory Zuckerman

What I learned from reading The Man Who Solved The Market: How Jim Simons Launched The Quant Revolution by Gregory Zuckerman 

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The story of the greatest moneymaker of all time [0:01]

Simons prefers to move in silence [1:40]

Unknown Unknowns > Known Knowns / Wise people always know exactly why something won’t work. That is why I never employ an expert in full bloom. —Henry Ford [2:42]

A one word summary of the book: PERSISTENCE [4:15]

Simons’ early life / Only the arrogant are self-confident enough to push their creative ideas on others. —Nolan Bushnell [4:44]

Advice from his father: Do what you like in life, not what you feel you should do. [6:16]

Personality: Jim had a persistent and burning desire to be wealthy [7:20]

A seed has been planted + Jim’s existential crisis [9:55]

Lessons from codebreaking that Jim applies to his business later [14:08]

Jim Simons at 29 years of age: Fired, father of 3 young children, no idea what his future holds [20:00]

Jim Simons at 33 years of age: Genius and madness are next-door neighbors [21:44]

Jim Simons at 40 years of age: Jim finally makes the jump. Only misfits understand misfits [22:55]

Jim’s first trading style [28:00]

We all go through times like this: DON’T QUIT! [29:15]

Jim Simons at 44 years of age / Jim’s partner doesn’t see the point in developing automated trading system / Giant success followed by giants failures [34:30]

Back to being filled with self-doubt [37:15]

Our mind loves playing tricks on us [38:00]

Jim Simons studied the past to gain an information advantage [41:00]

Finally, the new strategy starts working! / Even with wild success people will tell you that you are wrong [46:55]

Business is like nature, it doesn’t care if you arrive at the right answer from the wrong reasoning. [52:50]

Emperors want empires [57:02]

Life advice from an 82 year old Jim Simons [1:02:40]

I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth

Be like Gareth. Buy a book: All the books featured on Founders Podcast

#108 Jim Simons (Money Printer)

Introduction

"Simons chose a different approach, a world-class mathematician and former code breaker, Simons had a hunch that financial markets moved in orderly ways, just not in ways that could be detected with human intuition and insight. Simons believed that collecting and analyzing data could provide an advantage and that automated trading was possible, working from a ramshackle office in a Long Island strip mall, Simons hired mathematicians, physicists and computer scientists to amass reams of historic records and develop algorithms to process it all. His team hunted for patterns deep in the numbers that might reveal long sought rules governing markets.

After decades of struggle, his data-driven approach paid off. Other investors began to emulate Simons quantitative methods, inspiring a revolution that swept Wall Street, Silicon Valley and everywhere else predictions were made. Since 1988, his company's signature fund has generated average annual returns of 66%. The firm has recorded trading gains of more than $100 billion. Simons himself is worth $23 billion."

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