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Top Traders Unplugged

BO108: The Case For Being Longer-Term & Systematic

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8670 Ratings

🗓️ 29 June 2020

⏱️ 8 minutes

🧾️ Download transcript

Summary

Jim O’Shaughnessy’s paper from 1987 confirms our thesis.

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Transcript

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0:00.0

This one sort of stood out, and I don't know really why.

0:06.1

So we can, I have my own guesses.

0:10.0

But this was a quote.

0:13.2

Every world-class investor is questioning right now how they can improve.

0:18.9

So in a machine-driven age where everything is driven by speed,

0:23.4

perhaps the edge is judgment, time, and perspective, unquote, that I put in trend. I doubt that's

0:32.3

the part that made it popular. But I do think that we kind of want to hope that that's true, that our judgment and perspective and these human qualities we have can, we want that to have a positive impact.

0:49.6

And maybe we think that, well, we don't have AI. all we're doing is trend or our analysis with spreadsheets

0:56.1

or whatever all of us are doing so hopefully these other things will mean something and kick in

1:02.5

and I will not I will be able to compete with complex machine learning with all of these different

1:10.6

tools maybe I'm not sure that might be wishful

1:13.6

thinking, but I think we hope that's the case. Yeah. What do you think, Moritz, when you hear

1:22.2

something like that? Yeah, I agree with that. And it's just as you guys spoke, looking at the Twitter feed of things that I thought were interesting also in the past week.

1:35.3

And I think I shared that paper from Jim from 1987, I'm not sure if you remember, where I thought, well, that's just great. I mean,

1:46.0

that's like, you know, 30 years in the past, more than 30 years in the past. And so much

1:52.9

wisdom in that paper about systematic and quantitative trading and the advantages of that,

1:58.1

of that style compared to discretionary decision making. So I really, really like that.

2:03.1

Yeah, and you say Jim, but maybe we need to give people a little bit more clue to who Jim is.

2:08.0

Jean Nessie?

2:10.0

Yeah.

2:11.2

I'm not sure if I'm pronouncing that right, but that's him.

2:16.7

I think he's running an asset management firm in the States so people can surely

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