Jim Simons Trading Strategy: Net Worth | James Harris Simons:
James Harris Simons (Jim Simons) is that person who has so far earned the highest return on the stock market in the world, which is more than Warren Buffett. Warren Buffett has earned 21% compounded return so far but Jim Simons has earned 66% compounded return in last 20 years.
How did Jim Simons make such a return? And yet why is he not richer than Warren Buffett, let’s know how this happened?
Jim Simons used to work as a cleaner in a book store as a child. And gradually mathematics interest started coming and it became his passion. Later he did his Ph.D. in Mathematics. and became a professor in the college.
One day while teaching in college, suddenly the thought of starting a hedge fund came to his mind. And he immediately started a hedge fund its name was Renaissance under which Medallion Fund running. But for eight years there was not much growth in it.
Suddenly he felt that he had found the right technique for trading. So that they can earn better returns. Now they started trading with the same technique and are earning 66 percent returns continuously for the last 20 years.
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Jim Simons Trading Strategy
After all, what does Jim Simmons do? They adopt a trading formula for this which is based on scientific research. He has hired a lot of scientists.
Who do research for them. Which by analyzing the market direction and old data, they tell whatever trade they do. That’s where he trades. No trade is taken emotionally.
Is Jim Simons better than Warren Buffett?
Who is more than Warren Buffett. But then Jim Simons is not richer than Warren Buffett. Its secret is hidden in compounding.
Jim Simons has been trading for the last 20 years but Warren Buffett has been compounding for the last 70 years and the longer you stay in compounding, the more returns you get. That’s why compounding works in the long run.