Posted on July 13, 2011 at 12:35 pm UTC
Every once in a while, you meet someone and you just look in the mirror and think: hey, I’m not worthy. What am I doing with my life?
Today’s guest Elie Ayache is part entrepreneur, part philosopher, and part technologist.He takes aim at Taleb’s Black Swan model (and in general our view of probability and market pricing) and provides a new model of how to view contingent claims and their relationship with the market’s pricing mechanism. He walks the talk, growing and expanding his software firm’s client base with institutional investors.It’s possible that with time, his software and theory will have a significant impact on how contingent claims are viewed, priced and traded.
We discuss his new book, The Blank Swan: The End of Probability. I learned a ton about how this all works (even if I didn’t understand everything Ayache spoke about). Continue Reading »
Posted on July 12, 2011 at 12:45 pm UTC
The holy grail for investors — and one being frantically searched for by technologists, entrepreneurs, and investors — is to find a way to program machines to decipher social media (or more accurately, unstructured text) and structure a trading system around it.
Sentiment analysis (the ability to pull out what people are feeling by the words they’re using online) is one of the next big things in investing. Here are a few of the resources investors may want to consider when learning about sentiment analysis and portfolio management.
Have any suggestions? Add your own below.
Posted on July 10, 2011 at 7:30 pm UTC
On Tradestreaming Radio, we’re interviewing lots of innovative entrepreneurs, investors, and researchers all trying to make investors better at what they do. Check out our archives. Subscribe on iTunes. The podcast itself can be heard in its entirety here.
Transcript purchased from SpeechPad
Announcer: Live from the Internet, it’s Tradestreaming Radio, with your host, Tradestreaming.com’s own Zack Miller.
Zack: Hey, this is Zack Miller and you’re listening to Tradestreaming Radio, our place on the Internet where investors learn directly from experts. We’ve got a great show today. We’ve got Jeffrey Towson, the author of “What Would Benjamin Graham Do Now?” Towson was Head of Direct Investments, Asia Pacific and Middle East for Prince Waleed of Saudi Arabia, who is the world’s fourth wealthiest person. He manages a portfolio of over $22 billion, and Towson worked for him for many years, having grown up in the States. Lived overseas and was very much involved in direct investments, buying up properties, investing directly into companies.
His book is a really interesting take, because for many years, obviously, U.S. investors have recognized that there is the rest of the world, and it’s getting more and more interesting. Unfortunately, the way we do it is somewhat, according to Towson, very contorted. Buying a multinational that has exposure to the Middle East is one way to play this game, but obviously not the best. So, in his book, he lays out sort of a framework for investors of any sort, whether they’re retirement investors or professional investors, private equity guys, hedge fund managers, who really want to understand and learn from a framework of how to do business in the Far East. He lays it out in this book.
It’s a very good book. The book, in fact, is probably more suited for the classroom, but it was a very informative read. Lots of interesting anecdotes, and to me, the most interesting thing about the entire enterprise is how Waleed grew his business from a $30,000 loan from his father into a $22 billion investment portfolio, really with two or three staff. It’s a bare bones operation, yet he has his hands in investments all over the world. Being able to understand that model, to me, was really one of the most interesting takeaways from this book. Continue Reading »
Posted on July 4, 2011 at 2:45 pm UTC
Saudi’s Prince Waleed took $30k and investing globally, turned it into $22 billion — all with staff of only 2 or 3.
He was able to accomplish this by applying a framework to invest globally. Like Buffett, Waleed is a value investor. But the similarities end there — Waleed is a deal maker, on the prowl to see where he can add value and how.
In this podcast, we’re joined by Jeff Towson, who was Head of Direct Investments Middle East/North Africa and Asia Pacific for Waleed** for almost 10 years. He’s written a new book describing the Waleed model, What Would Ben Graham Do Now: A New Value Investing Playbook for a Global Age. He explores the essential question of our day: how does a foreigner properly invest in emerging markets? Continue Reading »