It just means "smarts." Aggressive smarts.
You know the alpha dog in the pack. It's what Buck aspired to be. The alpha is the leader, the A-player, the one who calls the shots. On Wall Street, when you have high alpha, you not only have high levels of insight into the crystal balls windowing the Stock and Bond Market, but you also have a following of other wolves looking to kill deer.
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Finance: What is a Random Walk hypothesi...65 Views
Finance allah shmoop What is the random walk hypothesis The
market is unbeatable Trying to beat it by buying this
stock selling that one Good luck You're this guy you
get free real estate wherever you stop so well you
might end up here Yep Yukon gold Well you might
end up here yet but alligators swamp where Your lunch
But if you take enough random walks and even if
you find gold or ah silicon valley real estate well
eventually you'll end up here That's the random walk theory
Itjust claims that the market is unpredictable You can't beat
it pretty much Just like the efficient market theory They're
kissing cousins Well given that quite a few investors have
beaten the market over time And a few like this
guy have crushed it Well who could have come up
with such an idea And like when Well it'd be
the french of course in eighteen Sixty three This guy
julian you know well And over time a bunch of
other eggheads tried to mathematically prove that the market was
unbeatable And in fact what they proved is for average
talent people it probably is Their efforts largely revolved around
missing the notion that buying a concentrated portfolio of a
dozen or so for high quality companies and not buying
into crappy industries like airlines or paper And paul for
anything highly unionized made it a pretty decent bet that
an individual investor over long periods of time could in
fact beat the market And if you think about it
you got the s and p five hundred If you
could just get rid of the worst two or three
hundred bottom cos down there Well the top two hundred
probably do pretty well and you beat the market nicely
and get rich and you go get the by portia's
in your old age Yeah those investors Well those investors
who beat the market They're rich The professors with the
misguided not street smart math but who know a lot 00:01:59.663 --> [endTime] of vocabulary words Yet their professors
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