The Intersection (w/ Raoul Pal & Dylan Grice)

TL;DR

Dylan Grice, an investor and economist, discusses his admiration for Jim Simons, the impact of books like "Fooled by Randomness" on his investment philosophy, staying engaged in a fast-moving world, and his controversial support for Brexit.

Transcript

RAOUL PAL: The next bit we're going to do is we're going to do a series of fixed questions. We've done this before on Real Vision, I think with you in the very early days. It's called the Intersection. Is there one person living or dead you'd want to interview more than anyone? If so, who and why? DYLAN GRICE: It would actually be Jim Simons. I was... Read More

Key Insights

• 💄 Understanding both science and finance is valuable in investment discussions, making Jim Simons an intriguing interview choice.
• ❓ "Fooled by Randomness" had a profound impact on Grice, highlighting the importance of uncertainty in investment decision-making.
• 👾 Active participation in the market and having skin in the game is crucial for staying engaged and curious as an investor.
• 👻 Admitting uncertainty and not knowing something can actually be an advantage, allowing for a broader perspective and avoiding blind spots.
• ❓ Learning from those below you, such as hiring talented individuals, can be as valuable as learning from those above you.
• ❓ As an investor, it's important to have a personal stake in the portfolios you manage, similar to Warren Buffett's approach.
• 🤗 Grice's tipping point in his career was realizing that not knowing something doesn't make one fundamentally stupid, but rather opens up opportunities for learning and growth.
• 😤 Grice admires Alex Ferguson for his ability to manage a team and learn from those who are better than himself, and he finds Margaret Thatcher's political career intriguing, particularly as a career politician.

Questions & Answers

Q: Why does Dylan Grice want to interview Jim Simons?

Grice admires Simons for his brilliance in mathematics, code-breaking, and his ability to apply his understanding of science to the world of finance. He sees Simons as someone he can have a mind-blowing conversation with.

Q: How did "Fooled by Randomness" by Nassim Taleb impact Grice's investment philosophy?

Grice describes the book as a turning point in his understanding of irreducible uncertainty. It turned on a light in his mind and made him realize the central role of uncertainty in investing.

Q: How does Grice stay engaged and relevant in a fast-moving world?

Grice believes active participation in the market is crucial. He immerses himself in investing rather than just reading about it. He embraces the pain, anguish, and curiosity associated with being connected to what's happening in the market.

Q: Why did Grice support Brexit and how did it affect him?

Grice supported Brexit because of his belief in decentralization and the transfer of decision-making power from Brussels to London. However, he faced criticism and felt like an outcast among his peers who supported remaining in the EU.

Summary & Key Takeaways

• Dylan Grice expresses his desire to interview Jim Simons, a mathematician and successful investor, because of his understanding of both science and finance.

• He credits Nassim Taleb's book, "Fooled by Randomness," for shining a light on the importance of irreducible uncertainty in investing.

• To stay engaged and relevant, Grice emphasizes the need to actively participate in the market and learn from those around him.

• He also shares his experience of being the outlier in a trading desk debate, leading to the realization that admitting not knowing something can actually be an advantage.

• Grice admires Alex Ferguson, the former Manchester United manager, for his ability to assemble and manage a team, and he is currently reading a biography on Margaret Thatcher.

• Lastly, Grice discusses his controversial support for Brexit, acknowledging that it was unexpected and faced criticism from his peers.