Cole Wilcox on The Power Law of Investing | #584
Today’s guest is Cole Wilcox, CIO of Longboard Asset Management, a boutique asset manager specializing in alternative investment strategies.
In today’s episode, Cole walks through one of my favorite papers of all time, Does Trend-Following Still Work On Stocks? Hint: it does. Cole explains why you have to be a good loser to be a good investor, how power laws dominate the stock market, and the set up for trend following going forward.
(0:00) Starts
(1:46) Introduction of guest Cole Wilcox
(3:19) Cole's career and the basics of trend following
(7:43) Original paper on trend following
(25:26) Non-correlated investments and trade profitability in trend following
(32:14) Handling market corrections
(36:24) Tax efficiency and stop-loss benefits
(39:01) The importance of holding winners
(43:26) Bitcoin
(55:03) Cole's most memorable investment
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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more.
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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
