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MARTIN: So I remember when I came home from elementary school one day, and my dad who was an electrical engineer, he used to design fuel gauges on airplanes, came home with this huge box. We’ve recently upgraded our systems to our next generation matching engine technology. And it was a Commodore 64. I said, “What’s that?”
ANAT ADMATI, PROFESSOR OF FIANCE AND ECONOMICS, STANFORD GRADUATE SCHOOL OF BUSINESS: So, my journey starts where I took a lot of math. I was good in math and I love the math. So, I was kind of, in my romantic mind when I was in my early 20s, I was going to take but not give back to math, that kind of thing.
Calculation Breakdown Let’s break down the math to find out how much you could earn annually with a $30 hourly wage: Consider an average workweek of 40 hours and an average year consisting of 52 weeks. Let’s do math again! Civil engineers $39.03 Environmental engineers $38.82 . $30 an Hour Is How Much a Year?
Best of all, none of those brokers charge commissions for buying and selling individual stocks. “I Presentation skills, marketing, search engine optimization, and networking. But a major in any common subject, particularly math or science, combined with above-average command of the subject matter are more important.
And so I think, you know, not to say you couldn’t do it when there’s zero, but I just think it’s a lot harder to make the math work. And that does encapsulate Morningstar’s investment philosophy and certainly they commissioned the book or, or funded it, I would say. Steve Gonzales is my audio engineer.
They believed in building businesses and far less focused on financial engineering. So you sell a lot of houses and you get commission on what you sell. The key is to build — think of private equity as a business that builds businesses, and make that business engine stronger and stronger. You control it. KLINSKY: Yeah.
Not only did he serve on the Brady Commission looking at the ’87 crash, but his history of investing and trading and public service, both at the Fed and the Chicago Board of Trade and Treasury Department, really unparalleled, as well as just a pretty amazing track record as an investor and trader. What did you find? RITHOLTZ: Right.
And so he set me off in a direction that was practical and at that point, commission business that he generated was ginormous, I’m sure. You, you get your BS in engineering from University of Texas. 00:04:22 [Speaker Changed] Think of that, 00:04:23 [Speaker Changed] So engineers tend to be pragmatic problem solvers.
And so I would see how the over-the-counter desk, over-the-counter stock desk would push stocks and encourage brokers to sell them, put a lot of commission in them, to move them because some big seller was coming into the market. Sara Livezey is my audio engineer. RITHOLTZ: Right. And so, you know where you stand.
Colin Camerer : So I, some of it was when I was in college at Johns Hopkins, I, I studied physics and math. And there was people, Physics didn’t have, people, psychology didn’t have math, economics was kind of the right mix. 00:09:43 [Speaker Changed] And, and tell us about your patent on active learning decision engines.
Wasn’t the Excel spreadsheet error, which changed their math. But as the engine of growth, what we’ve seen is that when you rely disproportionately or sometimes entirely on private sector to generate that growth, it ends very badly. My audio engineer is Andrew Gavin. I mean that was, that was the problem.
His commissions were drying up. And the ultimate example, the story I tell in the book is I found a railroad engineer out in Idaho who’s working for Union Pacific now. Well, so this railroad engineer is horrified to discover that he’s actually pulling freight to the wrong destinations. I do the math.
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