The Man Behind Moneyball: The Billy Beane Story | Domo
WALNUT CREEK — With the sun of athletic championship teams rising on the Bay Area horizon, the Lesher Center's January NEWSMAKER. QUESTION: Staying on Beane, what type of relationship do you two currently DEPODESTA: Billy and I remain close. the free agent or trade market and not being overly concerned about getting top talent necessarily?. Billy Beane, the baseball general manager whose story was the subject of He reached out to Paul DePodesta, a Harvard alum with a statistics were probably undervalued by the bidding market. Overview · Leadership · Careers · Customers · News & Media · Partners · Investor Relations · Contact Us.
That means their customers are wasting the fees they pay for active management. Of course, every investment fund manager likes to portray themselves as a contrarian investor able to hunt down the under-valued stocks and exploit the market anomalies. It's easier said than done.
MLB ‘Moneyball’ exec Paul DePodesta leaves Mets to take over Cleveland Browns | For The Win
In the movie, the work was done by Beane's assistant general manager, Peter Brand, a geeky economics graduate from Yale who used computer algorithms to rate players. If you took the lesson of Moneyball, at least the movie version, to its logical conclusion, in baseball you could replace scouts with statistics, and in investment you could replace business analysts with technology.
And of course, technology disrupting the funds management industry is an actual trend. First, technology has enabled the rise of passive investment options such as exchange-traded funds ETFs or index funds that track the market or a market segment.
Moore argues the growing dominance of passive investing is an advantage for active managers seeking anomalies.
Index funds by definition don't take into account underlying corporate valuations and therefore can reinforce price distortions in the market. The irony is that the more money flows into passive funds, the greater the distortion in asset pricing, and therefore the more opportunity for long-term active investors to find and exploit the anomalies.
But Moore also agrees that passive funds fit the bill for many investors, either as the whole or part of their portfolio. Second, low-cost automated investment advisers or robo-advisers are becoming increasingly popular with younger investors.
Third, technology is challenging even the sort of value investing that Moore is advocating.
The Economist recently reported: But even here technology is eroding the case for active management. Computer programs can select stocks on the basis of such criteria at low cost.
These "smart beta" funds are gaining ground. The result is that average fees are being dragged down across the industry. But he says the quantitative process relies on analysis of past performance and it only works as long as the long-term trend remains stable.Sashi Brown & Paul DePodesta Press Conference 1/21
It takes "intuition, judgment and insight" to spot when things are moving in a different direction. For example, he invested in European beer brand Heineken in the early s because its price-to-earnings ratio was half that of US-based Budweiser, and Moore believed the beer market was set to globalise.
Now Moore is concerned about rising global interest rates and says most people are under-estimating how much this will savage property and government bonds in the short term. He thinks banks are a good investmentbut prefers US banks to Australian ones. The true story behind Moneyball bears out Moore's argument about the value of humans.
In real life, there was no such person as Peter Brand. These people are always experts in some subject. I can set multiple goals and I will reach them. I treat life seriously. I must figure it out whatever it is. I must be accurate, thorough and maintain high standards at whatever I do. I want to make some meaningful contribution to life. Using the information above and studying both Billy Beane and DePodesto, we can see that they are both exaggerated Superiority people.
A Deeper Look at “Moneyball.”
So yes, exaggerated Superiority styles they both are. The relationship between these two men is interesting. Superiority people can be active or passive with their behavior. Those who are active focus on a goal and concentrate all their energy on reaching it.
Once they decide to go for the finish line, they will take calculated risks to succeed. We see this personality a lot in small business owners.
Billy Beane - Wikipedia
Passive Superiority people are more cerebral; we see them use much less active behavior. Their goals are more detailed-information oriented. De Podesta fits this description in Moneyball. We see this in Moneyball with both men. DePodesta only verbalizes his fear in one scene when Beane trades Pena.