Skip to main content

Posts

Showing posts with the label mathematics

Just my thoughts #0299

Paradoxically, one of the reasons for Rome’s demise was that it kept winning wars. Victories expanded the empire’s territory, and the risks increased proportionally. Men, primarily middle-class men, volunteered as soldiers; the larger the territory, the longer the wars lasted, and the longer it took for them to return home. The women who remained at home were forced to borrow labor and became indebted to the nobility. Eventually, the women were sold into slavery, and by the time the men returned, their families had disintegrated. People don’t betray because they’re evil, but because it increases their risk. If the territory you’re in grows, you might reconsider your loyalties to the organization. - Joseph’s “just my thoughts”

Just my thoughts #0092

James Simons founded Renaissance Technologies, the leading American hedge fund investor. He was, in fact, a mathematician. The Medallion Fund he ran had also seen a 200-fold increase in Berkshire Hathaway stock yield, matching Warren Buffett's performance. It was an incredible record, plain and simple. This conclusion was a subtraction of 5% of the management fee from the fund as a GP with 44% of the compensation fee. He invested in a cutting-edge "quant system" that trades stocks using sophisticated computer-aided algorithms. To eliminate emotional interference, the finance industry excluded employees. However, they recruited doctors like him from the science and technology fields. Even having extensive financial and investment knowledge, investment is the conclusion of action. Sound judgment beyond feelings is crucial for investment, but feelings are a variable. It's challenging to become wealthy if you don't control your emotions. In other words, emotions are a...

Just my thoughts #0034

In mathematics, a "recursive proposition" is a proposition whose true or false value is fed back into the proposition itself. For example, "I can never allow this to happen before I die!" is a recursive proposition. Unfortunately, the condition for proving that this is possible is that I die. The problem is that you are dead once, you can not be longer the person who gives permission. This phenomenon also occurs in the investment business. The most common example of this is an investment in stocks. This is a recursive proposition because if the price of a stock goes up and you sell it, the sales volume directly affects the price. Therefore, the number of shares (trading volume) is one of the most important factors to be considerable when investing in stocks. This property of recursive propositions is a good explanation for why the large trading of stock volumes is difficult to work. - Joseph’s “just my thoughts”