I’m a big proponent of passive investing. It all started when I found Ben Felix’s YouTube channel; I love how he uses empirical research to prove that the optimal investment strategy is to buy a well-diversified index fund. Here’s one such stat: 80% of US active funds underperform their benchmark indices over a 3-year period; 93% in Europe (source).
So why the hell am I bothering? The boring, honest answer: I’m quite interested in the field and there’s good money to be made. Let me elaborate on that for a bit.
I was a Mathlete in school, so I’m partial to numbers. I didn’t expose myself much to finance in university, but I remember fondly the few modules I took on derivatives, asset pricing, and statistics. And I often find myself critiquing the research that guides product decisions in my day job.
There are some personal traits that will probably be weaknesses in this field. I’m risk averse and tend to over-analyze things, for example. Which is why I’m focusing more on the learning journey.
I’d be lying if I said I wasn’t tempted by the compensation potential either. Even if I fail in my trading quest, I could potentially settle for a Quant Developer role that would enable me to easily earn 6 figures. This is my only option for a well-paying permanent role as I just can’t get myself motivated to grind Leetcode-style questions.
I’ll leave you with a question - do you think all of this makes sense? Send me a message on LinkedIn if you have any advice - I’m totally oblivious about the field and I need all the help I can get!