Jim Simons trading strategy | Jim Simons net worth:
James Harris 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 a 21% compounded return so far but Jim Simons has earned a 66% compounded return.
Jim Simons strategy
Suddenly he felt that he had found the proper 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.
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 does research for them? By analyzing the market direction and old data, they tell whatever trade they do. That’s where he trades. No trade is taken emotionally.
James Harris Simons’s life story
Jim Simons used to work as a cleaner in a bookstore 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 whose name was Renaissance under which Medallion Fund was running. But for eight years there was not much growth in it.
Jim Simons vs Warren Buffett
How did Jim Simons make such a return? And yet why is he not richer than Warren Buffett, let’s know how this happened? 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 over the previous 70 years and the longer you stay in compounding, the more returns you get. That’s why compounding works in the long run.