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Warren Buffett, the best investor?: a mathematician surpassed him with his “Pentagon pizzas” strategy

Warren Buffett, the best investor?: a mathematician surpassed him with his “Pentagon pizzas” strategy
February 21, 2024 – 20:59

A mathematician managed to obtain an unusual profitability with a method that was as infallible as it was unusual.

Warren Buffet, the best investor?: a mathematician surpassed him with his “Pentagon pizzas” strategy

Warren Buffett is an American businessman, considered one of the largest investors in the world, however it seems that a mathematical he surpassed it with his strategy “The pizzas of the Pentagon”.

This unknown strategist would have obtained a return of 66% annually since no less than 1988. This means multiplying the investment by 10 every 5 years.

This financial genius is called James Simons But his studies were not based on economics or finance but on mathematics.

He could have had a brilliant career as a mathematician at one of America’s leading universities, but James Simons He dedicated himself to investing. And for this he decided to use massive quantitative data to gain an advantage when choosing an asset.

In the bestseller “The Man Who Solved the Market: How Jim Simons Launched the Quantitative Revolution,” dedicated to his life and method, it is revealed a singular but very relevant example of the quantitative data that care was taken to exploit.

One metric he analyzed was called “Pentagon pizzas”which had to do with the movements of the restaurants near the government institution.

For Simons yes Pizza sales increased significantly for a couple of dayswas a signal taken into account by a well-trained algorithm to prepare for a new geopolitical conflict.

What the mathematician determined is that The greater the number of pizzas, the greater the number of overtime hours for the workers and therefore a problem was looming at the door. In fact, he considered that this was closely linked to the rise in oil.

Source: Ambito

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