100 Comments

  • --

    July 6, 2019

    Change playback speed to 1.25x. You're welcome

    Reply
  • gloverelaxis

    July 17, 2019

    This guy, just like everyone in finance, is a fucking parasite who does nothing useful for the world whatsoever.

    Reply
  • rabab maroc

    July 22, 2019

    great job thank you for sharing Mr.

    Reply
  • Vaso Vukotić

    August 16, 2019

    27:50 Efficient Frontier
    Kelly's Formula 45:30
    Risk Parity: 59:30
    1:16:00 forecasting by looking at only historical data is like driving and only looking in the rearview mirror

    Reply
  • Jackington Kellogers

    August 26, 2019

    Honestly cash should be under the line because it looses value over time.

    Reply
  • Wall Street Bravado

    August 27, 2019

    Hey!!! I like your channel. It is content rich. Keep making informative videos. ▶️📺🎥🙌🏽💥

    Reply
  • zofe

    August 28, 2019

    Bullish market: only stocks.
    Bearish market: only cash.
    Since October 2008: NEVER bonds – they are fraudulent per haircuts i.e. broad daylight robbery!

    Reply
  • tdreamgmail

    September 3, 2019

    How does crypto fit in?

    Reply
  • Stephen Doty

    September 5, 2019

    Too bad we only know math about the past.
    But we invest for the future.
    So the analogy often fails.

    Reply
  • Stephen Doty

    September 5, 2019

    1:22:51 yes, and this is why Nassim Taleb had to write the bestsellers "The Black Swan" and "Antifragile," because this point is IGNORED by many investors and money managers.

    Reply
  • Stephen Doty

    September 5, 2019

    Claude Shannon is such a big name to those who study IT, but the mention of his name gets blank stares from most people. A popular biography on him was written since this video was made.

    Reply
  • Don Marshall

    September 9, 2019

    "LIQUIDITY RISK"…………….."THATS ANOTHER TOPIC"…..LMFAO

    Reply
  • Vinay Chakraborty

    September 10, 2019

    He should have been teaching quantum physics

    Reply
  • MO FA

    September 12, 2019

    I admire anyone teaching at MIT, but the flow of comments from Chinese about how amazing he is not true, he's as any MIT professor, worth mentioning that I'm studying in China and the professors here can't speak a full correct useful sentence in English, They made me hate anything being taught by any Chinese professors

    Reply
  • padraig s

    September 18, 2019

    30:40 The only lecture in MIT and where 0 = ∞ .

    Reply
  • Jorge Gomez

    September 22, 2019

    Just buy and apple and amz stock in ‘01 and seat back relaxing and you will do better. You “ just” have to find them first lol

    Reply
  • Jorge Gomez

    September 22, 2019

    0.25 Picasso, 0.25 Old scotch, 0.25 Gold, 0.25 Prime Real Estate. that’ the stuff that crosses generations.

    Reply
  • Mark Purslow

    September 23, 2019

    modern portfolio theory is wrong. but its a nice lecture anyway.

    Reply
  • Nicholas Craig

    September 25, 2019

    What kind of chalk does he use?

    Reply
  • Andrew H

    September 27, 2019

    Holly shit, this was made in 2013, and this guy was in safe assets? if this teacher stayed in safe assets, as he stated he was, then he missed out on tripling his money 6 years later. What is the lesson in this? They guy teaching portfolio theory severely underperformed even the most basic index fund. I doubt he has done better than a monkey throwing darts. This is why we all hate paying fund managers. Most of them will do less for you than you can do for yourself. Use a financial advisor, not a fund manager.

    Reply
  • Andrew H

    September 27, 2019

    @1:17:57 ''The optimal strategy is to do the same thing as other people are doing''. – That will be $4,000 says the MIT teacher.

    Is this guy actually teaching how to maximize returns or simply how to sound smart enough to charge other people fees for doing something for them that they could do for themselves? Actively managed funds are a joke.

    Reply
  • Mathin3D

    October 1, 2019

    FAIL.

    Reply
  • Zeed

    October 3, 2019

    P=1 constant
    Bonds=0.4
    Emerging market bonds=0.4
    Stocks/ETF=0.2
    P=Bonds+emerging market bonds+stocks/ETFs

    Return on portfolio is Rp
    Rp= R(expected rate of return) multiplied by asset class(stocks,bonds) and the sum of the combination of each asset class

    Reply
  • Hallo Daniel

    October 4, 2019

    50:00 diversifikation

    Reply
  • LuvBoiSora

    October 6, 2019

    Okey so at 46:40 he talked about a negative probability… and he teaches at MIT …? Wtf

    Reply
  • Dick Piano

    October 6, 2019

    this guy is an excellent lecturer. i dont give a shit about mathematics or finance…but i found this very interesting to listen to.

    Reply
  • Fredriks Rikedomar

    October 7, 2019

    1:16:00

    Reply
  • Cherie W

    October 21, 2019

    the clarity in this lecture is insane

    Reply
  • Tim,BooKat & uncommon sense

    October 22, 2019

    Such a shame!, The Tutor's Concentration on rubbing out his chalk markings on his chalkboard, caused him to turn his back, and go silent, only for a second or two, but this caused the Lecture to appear to be delivered in a staccato kind of manner which caused me to lose my concentration and the threads of my understanding just as I thought I was getting to grips with what he was teaching.,Me!!.🤪🙃🙄😕🤔🤔🤔🙃🤯🤯😱🤮

    Reply
  • Tian Yu

    October 27, 2019

    I am going to apply MIT!!!

    Reply
  • Sam Sam

    November 4, 2019

    No wonder modern education is not worth the tuition fees.. such a waste of video and time so much talk and so little substance people will avoid investing.. all that and no mention of investor sentiment.. all the maths on there keep it simple stupid..

    Reply
  • Dust screen

    November 8, 2019

    Sir yr voice..

    Reply
  • James Morrison

    November 11, 2019

    What's a portfolio 4:01
    How do we learn something useful 5:35
    What is the goal? 13:26

    Reply
  • Allen Crook

    November 12, 2019

    I would like to know whether there are any successful technical traders here who could share their stories or basic steps i need to take to be a successful trader for income. Does anyone trade full time and generates monthly income as this is my goal and i need to know if it is achievable before i start working on it more seriously. thanks

    Reply
  • dachanist

    November 12, 2019

    There is one main assumption here, that the moving average of past performance will continue both in terms of return and separately of vol. Consider a strategy that sells puts and calls. The correlation would be perfectly negative. The returns would be a simple function of VIX… The clueless arithmetician would salivate as he saw VIX rise, anticipating all the profit… then confusion sets in as PNL drops… and drops… and drops. All this is yet another technical indicator… a glorified moving average cross strategy.

    Reply
  • Huy Pham

    November 13, 2019

    55:36 I think his assumption is wrong when combining 50/50 of A and B, in Year 1 50%A will be increased from $50 to $100 and 50%B will be decreased from $50 to $25 so the total of the portfolio will be increased from $100 to $125 => increasing 25% but when in Year 2, 50%A will be decreased from $100 to $50 and 50%B will be increased from $25 to $50 so that the total of Portfolio = $100=> decreasing 20% in Year 2

    Reply
  • KelGhu

    November 13, 2019

    The only thing I don't like about this professor is his tie. It's too long! The length of the tie should be exactly right above the belt. Never overlapping, and never shorter. 😛

    Otherwise, I loved this course… It brought me back to my MBA days ❤️

    Reply
  • Dipti R

    November 17, 2019

    I Wonder there is a mistake in calculating Standard Deviation for flipping coin it should be 50%

    Reply
  • Passive Income Sam 007

    November 19, 2019

    1. risk management 2. use the right technical indicators, and you'll do at least double digits with minimal "risks"

    Reply
  • M

    November 20, 2019

    God this is awful for real traders. Theory….blah blah…great for corporate suits tho.

    Reply
  • Sancho G

    November 21, 2019

    The only thing you need to know about portfolio management…buy gold and diversify it by burying it in different places. Ron Swanson school of investing.

    Reply
  • Jonathan Langlois

    November 22, 2019

    All assets are correlated by the interest rate set on money itself aka the Federal Reserve…

    Reply
  • St Louis IX

    November 25, 2019

    Thank you for your amazing content MIT & thanks to Jake for his interesting lectures too!!!

    Reply
  • MM

    November 25, 2019

    I would love to see his real life portfolio and its avg return… If he was any good in real life he would not need that teaching job…

    Reply
  • Delores Umbre

    November 28, 2019

    01:18:00 can be applied to almost decisions in adulthood or at work. what is the difference between human and a computer? human can analyze based on past trends of events so that it can derive a more holistic solution

    Reply
  • Jonathan Ciesla

    November 29, 2019

    Math is a problem solving technique and a way to role play the best female characters on IMVU or play station Home Hub spaces.

    Reply
  • Hollowell Jeff

    November 30, 2019

    I used to think portfolio management was another overblown hype till I started my investments with my current account manager, Mr. Ben Fredrick, who changed my views on that and helped me grow my income by a lot of percentages.

    Reply
  • extremumone

    November 30, 2019

    who cares about this outdated shiet when FED made everyone "buy the all things" and BTFD. Who even cares about the analysis these days.

    Reply
  • Rosy Foster

    December 2, 2019

    Interesting video i never knew how portfolio management works till i got in touch with Mr Gabe kellough that expert makes me $8,900 in every two weeks

    Reply
  • maji You

    December 3, 2019

    coool professor

    Reply
  • Bulusan marG

    December 5, 2019

    This professor Very excellent and thank you for sharing your knowledge god blesse Sir

    Reply
  • Vanessa

    December 6, 2019

    why is this in the playlist of junkys and ashays

    Reply
  • Prius Dog

    December 15, 2019

    He is minted

    Reply
  • Adiel Stephenson

    December 17, 2019

    This is such useless drivel.

    Reply
  • Lee anne

    December 20, 2019

    he looks very happy

    Reply
  • autembor

    December 21, 2019

    Where is education on the R vs std chart?

    Reply
  • Victor Contreras

    December 21, 2019

    Always hated those students in my classroom.. 1:19:22

    Reply
  • You don’t Know me

    December 23, 2019

    Jiang is that you???

    Reply
  • Alessandro Remigio

    December 23, 2019

    Why earning start from 0 years old?

    Reply
  • MasterShredder

    December 23, 2019

    Hilarious that he puts VC as "high positive return" when it's well known that the top 5% of VCs make 90% of the money and most VCs lose money.

    Reply
  • llewev

    December 24, 2019

    Fundamental problem with the measurement (and real-world meaning of roh) and the correct measurement of FUTURE volatility – which is not necessarily a function of the volatility measured statistically from some arbitrary point in the past. Its all theoretically valid, but not actually executable in exact detail in the real world

    Reply
  • Jim Kahng

    December 24, 2019

    I'm pretty sure this guy was my Uber driver last night

    Reply
  • Daniel Purdy

    December 24, 2019

    All this math and you still won’t outperform my index funds.

    Reply
  • Dr.Sidhharth T

    December 24, 2019

    Rather than a professor… I want to listen from a hedge fund manager

    Reply
  • Daniel R. Wiegger

    December 24, 2019

    £u2A°={¥}

    Reply
  • Daniel R. Wiegger

    December 24, 2019

    Thanks to all. Merry Christmas… d.w…

    Reply
  • Rocknrolladube

    December 24, 2019

    This is a lesson on how not to invest. The funny part is that this exactly how many money managers actually invest…Dumbest thing ever…basically lesson: you see, investments has nothing to do with actual assets, companies, securities, etc….instead, investing is more like baking a cake. But if you really analyze what he is saying, his advice is ver dangerous and naive. Investing based on correlations assumes they are static. This strategy is akin to driving while only looking in the rear view mirror. Correlations are not static, in fact, correlations will change precisely when you need them not too…this is because every moron out there is betting (at the same time) that they will stay the same. All their collective bets move the real market and change the correlations. Smart managers know that in times of crisis, all correlations move towards 1. Any get rich formal that doesn't include principles of finding good businesses will fail.

    Reply
  • Boss G

    December 25, 2019

    The good old fashioned chalk and blackboard hehe

    Reply
  • BRITISH TV SERIES

    December 25, 2019

    He is such a cheerful person! He just can't help smiling all the time can he?))))

    Reply
  • Blogfeuer: Onlinemagazin

    December 25, 2019

    Dont need F(x) if your net average income joe salary to tell you: you're poor middleclass.

    Reply
  • Ivan Gurrola

    December 25, 2019

    My professor at UTDallas taught this better, no offense MIT folks.

    Reply
  • Rx - Pert

    December 25, 2019

    Are stock returns normally distributed? Might as well buy a Vangard S&P, index fund and call it a day.

    Reply
  • blax0r

    December 26, 2019

    kelly criterion is explained extraordinarily poorly.

    Reply
  • lombardo141

    December 26, 2019

    No wonder I cant make a dime in the stock market. Look at all this crap that smart money is doing and am trying to buy breakouts. -_-

    Reply
  • duy vinh nguyen

    December 26, 2019

    I wish those lectuerers for all Moduls i have …..

    Reply
  • CannabinatedFantasy

    December 27, 2019

    soooo the economy is conditioned to crashing itself?

    Reply
  • Tan Jia Lee

    December 28, 2019

    This is a not about beating an index, by a proper asset allocation that prevent layman blow up their account within 2 weeks if they use margin, and also reduce the maximum drawdown and the exposure risk to the market

    Reply
  • Jimi Hendrixx

    December 28, 2019

    Bitcoin, R.E, P.E, V.C

    Reply
  • Şükür Şükür

    December 28, 2019

    16:22 graphic is not true. Earning is costant or upward after retirement. There are a few obscure points more. What ever! I will continue to see wisdom.

    Reply
  • Şükür Şükür

    December 28, 2019

    Please purchase a good quality eraser after making money

    Reply
  • Bear

    December 28, 2019

    So funny to watch those 'smart' kids pick stocks like Yahoo and energy sectors, some of the worst possible choices you could make at the time. And to top it off, the guy giving the lecture is one the worst investors out there, tanking Harvard's endowment.

    Reply
  • Kevin Chou

    December 29, 2019

    He looks like the banker in Dark Knight

    Reply
  • Joe Dvorsky

    December 29, 2019

    It seems incredible to me, that the initial ideas of the class, as to what comprises a portfolio, written on the right side blackboard, do not include common stocks! (I see mutual funds and ETFs, yes, but not STOCKS!).

    Reply
  • Bellefeu

    December 29, 2019

    Less than $1mil, it's not "that" improbable to beat the market with high-mid risk; assuming the market is ~12%, and you get 20%. Beyond a few mil, the risk is far too great, and beating the market is highly unlikely. Not impossible, just so great a challenge, that it's not worth 99.999999% of all traders time unless you write an AI script to read the markets for you.

    Reply
  • extremumone

    December 29, 2019

    The main bad thing about predictions in economics is that there is no object.
    The things you pretend to be having knowledge about are expectations of The Others about Valuations of Objects.
    You only have faith that these will stay still. Like believing that the stocks you invested in will stay in sp500.

    The really bad thing about portfolio management is whether your belief in actual non-correlation of positions is true. And if not are you TBTF and can cry profits in from the FED.
    Warren is a crook, not an icon. Do as I say, not as I do"" type.

    Reply
  • extremumone

    December 29, 2019

    19:30
    spreading lies. Risk is clearly defined. And it is not beta alone. Not variance alone. It is multiplication of amount of loss and probability of loss.
    Only in finance this is perverted. Which makes VIX XIV etc. manipulation by FED such an instrument of infinite power. And altering expectation of variance they redistribute risks on poor from the rich.

    Reply
  • Mr X

    December 29, 2019

    Fundsmith

    Reply
  • floxy20

    December 29, 2019

    Be 100% in equities 100% of the time (no to bonds and no to market timing). Demand at least a 3% yield. Demand a track record for each stock of regular dividend increases. Never buy a mutual fund or pay for financial advice. The good news: you will become rich. The bad news: it will take some time.

    Reply
  • Vinz Sons

    January 1, 2020

    At 32:53 anyone good at maths mind showing how to derive W1=0 or W1=1 and combine the two securities with zero correlation?

    Reply
  • Aashish Bharat

    January 1, 2020

    So I need money?

    Reply
  • Floorthelove

    January 1, 2020

    1. Buy Bitcoin.
    2. Wait.
    3. Profit.

    Reply
  • Frederick J. Griffin

    January 2, 2020

    It's a waste of funds trading forex or stock without a good system like the ASH STRATEGY or atleast a signal provision website like 247fxtrades.com

    Reply
  • Daniel McCoy

    January 3, 2020

    I'm sure he makes a lot a money. So why does he teach?

    Reply
  • michael evangelista

    January 3, 2020

    Don't wait. Just drop out

    Reply
  • Lina Palacios

    January 3, 2020

    MIT ❤️

    Reply
  • Ancient Kid

    January 7, 2020

    INDEXES IS FOR LAZY PEOPLE WITH NO BALLS

    Reply
  • Weidong Lin

    January 10, 2020

    What a great teacher! He can explain things very well.

    Reply
  • YongKang Chia

    January 10, 2020

    Why is the standard deviation of a coin flip 100%?

    Reply
  • Dylan Martens

    January 11, 2020

    None of this academic bullshit matters in the REAL WORLD. In fact, (if my memory serves me well) — Long Term Capital Management's (LTCM : see Myron Scholes and Robert Merton, 1997 Nobel Price winners) hedge fund crashed in less than one year. These academic goons lost $4.4 Billion out of the $4.7 Billion of assets under management in eleven months. ROFLMAO None of these academic goons could hack in the real world as portfolio/hedge fund managers. They lack the intuition needed to sort out the behavior of markets, sectors, and investors at various cycles in the market. They're stuck with formulas in their heads like the ostrich digging into the sand. That's all they know ; nothing else .

    Reply
  • A TPN

    January 11, 2020

    As an aspiring architect, this is not the portfolio I had in mind

    Reply

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