@TradersConf let me also continue on that last point. if you're using algos for convexity, use them as signals over set and forget trading. Algos are good for plumbing type edge extraction, like exchange arbitrage, as one example
@TradersConf automated strategies decay faster in market regime shifts because they will never be as reflexive as human traders. Also automated strategies get annihilated by slippage and fee decay without proper management. Also HFs use automated strats to extract linear returns, not convex
TODAY IS WARREN BUFFETT’S FINAL DAY AS CEO OF BERKSHIRE HATHAWAY.
The simple reason for why he’s the GOAT:
Compounded Annual Gain from 1964–2024:
- Berkshire Hathaway: 19.9% per year
- S&P 500: 10.4% per year
Overall Gain from 1964–2024:
- Berkshire Hathaway: 5,500,000% return
- S&P 500: 39,000% return
Over roughly six decades, Berkshire compounded at nearly double the annual rate of the S&P 500.
Many managers got better yearly returns, but no one has been able to beat the S&P by 100% for over six decades.
The discipline that it takes to create that longevity is why he’s the GOAT.