If a 26 year old invested $5 a day, the price of a cup of coffee, on retirement at age 65, they would be sitting on $3.2M! Millennials are in a position to achieve extraordinary returns by investing quantitatively.
Quantitative investing is the search for above average returns using data. Factor investing, which is one example of quant investing, attempts to break down the investing process into quantifiable characteristics. We can then use the data to build an outperforming portfolio.
A quantitative strategy is a set of filters which are applied to a database so that it selects a number of stocks to invest in. A “good” strategy is one which provides a historically high return, at a low risk.
We overestimate what we can achieve in the short term and underestimate what we can achieve in the long term. In the case of most investors, the goal is long term financial freedom. To achieve this, our actions must be in line with our objective.
The popularity of the FIRE movement (Financial Independence Retire Early) has been growing exponentially over the past over the past decade. Particularly prevalent among millennials, many people simply don’t want to work until the classic retirement age of 65.
Quantitative analysis attempts to makes use of data to make more systematic, rules-based investing decisions. The benefits of factor investing include risk management, diversification and outperformance.
Quantitative investing involves making investment decisions using a systematic approach – following a routine or structure based on long-term historical evidence. It blends features of the active and passive approaches
Water cooler talk is not a dependable investing strategy which will allow you to achieve any long-term success. Aikido presentd outperforming alternatives to the most recently hyped tech stock or index fund.
Our aim at Aikido is to bring quantitative investing to everyone. We want to bridge the gap between passive and active investing, providing the simplicity of passive investing with the potential outperformance of the active approach.