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Benoit Mandelbrot, RIP


JEast
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I will let u figure out whether I knew w/o looking up or not.

 

My guess is that yes, you knew it without looking it up.  :D

 

On a more serious note, Mandelbrot deserves a ton of respect for his mathematical genius, but I've always found it difficult to apply his insights to investing.  If anyone has views on this, it would be great to hear them.

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I will let u figure out whether I knew w/o looking up or not.

 

My guess is that yes, you knew it without looking it up.  :D

 

On a more serious note, Mandelbrot deserves a ton of respect for his mathematical genius, but I've always found it difficult to apply his insights to investing.  If anyone has views on this, it would be great to hear them.

 

 

I knew that because #2 son has the Sierpinski Gasket tatooed on his arm, and he told me that weird factoid.  A good book about practical application of fractal geometry for investing is Why Stock Markets Crash by Didier Sornette.  :)

 

The biggest take away from fractal geometry is that there is often underlying, recursive order within phenomena that appear at first glance to be random.  In the stock market this shows up as kurtosis, a warped bell shaped curve that is hyper normal for the most part and then goes crazy for briefer periods.  Any investor who appreciates this has a huge advantage over the herd.  Calling turns in the market or with single stocks is probabilistic, but it is possible to get an edge in prediction of changes in direction with study.

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