YouSaid · the spoken record

William Sharpe

lines on the record: 157
first: 2017-06-02
most recent: 2017-06-02
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“I mean, there's nothing more fun than discovering something you hadn't anticipated. I mean, that is just the best trip ever. And so I was lucky enough to have a lot of those experiences and also, you know, teaching. Teaching can be very rewarding. It can be very frustrating and very boring. But when it's rewarding, it's really rewarding. So I don't think I'd choose to do it differently.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“To be perfectly frank, that's an interesting question. I've not thought about that. It's easy to say I I should have taken more math than the first course in calculus. I know that. But I faked my way through well enough. I don't know. I mean, it's been a hell of a ride. To say the least, I would not want to have sort of.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm thinking a mix. And I know people who teach that grade level know this. They've been doing it for decades. Just that I grew up in an environment where I was up in front talking. And yeah, we had interchange, and I did small seminars, but still, and the idea of now having every five minutes, you know, here's something, test them. If they learn it, they get to go on. If not, they go back. Presented a different way until they get it. I mean, the ability of computerized systems to engage in all of that, you cannot ignore that. And how that's all going to shake out, I don't know, but I'm awfully glad I'm not entering.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And what I found with my kids, I did this last year. Then I did ten one-hour sessions, and it was great for the first, and then I would sit and you want help, or what are you doing? And I only have 12 kids. And then at about session five, I could have killed them. They were getting really antsy and itchy and bored, and so I slowly got them to come over to scratch and learn a bigger, broader language where you can be more creative.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Sense. So I went from in the first two years, I taught the course, all right, here I'm doing this and now you do that and you can experiment with some variations. Now pay attention, we're going to do this and you're going to do that, which is the way in which you pretty much teach Scratch to something called code.org, which is online free material Bill Gates, Zuckerberg, and its heavily supported, and the student just logs on and starts solving puzzles. And it's got feedback. It's very clever.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“To think on the fly. Yeah, my son, who's in education told me when we were talking about different ways I've experimented with my kids in the summer program, he said, you've got to change from being, this is jargon and Ed, apparently, from being the sage on the stage. Being the guide by the side”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, I've read again books. You know, there are books about speculating on that, some of which I've read. And, you know, the whole idea, I mean, one author had this argument that I think is very valid. We're beginning to learn something about how people learn, how brains work. And his argument was, if you tried to invent the absolute worst way to try to convey information and education to a student, it would be to have somebody stand at the head of the class and talk to him for 50 minutes. And so all the ideas of online learning with feedback and constant testing and branching and all that, I think they're fascinating. There's something there.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Do research or analysis or decision making analytically and also to understand what's going on with the things that are probably going to displace you in whatever job you start at. I mean, I have no notion. What is university education going to be like in 20 years?”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Roughly twelve And it's been a challenge. And I'm still experimenting with different methods. But there's this wonderful language developed over decades at MIT called Scratch. Four eight to sixteen year olds, which is a remarkable language. As a matter of fact, I have a blog in which I did a whole retirement income Monte Carlo system, and I wrote it entirely in scratch just to prove I could, and It's not fast, but it's not bad. I had to write all my graphic routines. You can find it. It's something like retirement income scenarios, blogspot or something. You find it. There's a link on my website. But my view is that kids, not necessarily become programmers, but to think logically and to begin to get an appreciation of how you can think algorithmically.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Nor presumably does anybody else. But you'd better get a really broad education, and I mean really broad because technology, you know, I don't think we've begun to see anything yet. Technology is going to intrude and take out any profession or trade that has any routine nature to it. We know is subject to mechanization, computerization, whatever you want to call it. So you need real breadth and you need the ability to think and to learn and the willingness. I have this little sideline. This will be my fifth year. I teach kids in one of the towns near Carmel how to program code we have.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, there was a good during the revival of us. There was a great tragazz scene in San Francisco. And when I was at Cal, my freshman year, we used to go to a place in Oakland down by in the industrial district. Turk Murphy, trying to remember his... his clarinet player, but there was some really good, there was a big revival period of Trajaz, just as later there was folk music. I love the folk music era.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, I mean, I used to go to a little bit of some of the clubs in LA in that era, but no, I never got really got hooked on that.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And Folonious monk and I sort of lost interest around the big band era. See, I grew up at the tail end of the Big Band era. But and then I listened, followed, played traditional jazz.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I go to every single opera in the movie theaters And when I can live performances, but we don't have live opera in Carmel. Once in a while we have one,”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“July. It's fantastic. So it's outdoors. In our 80th year, well, it's a number of venues. We have chamber concerts, main concerts.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I play piano now just for myself. I don't play out, as we say. And I'm involved with the Carmel Bach Festival, plug plug. Everybody should Carmel Bach.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It could Yesterday I read the book I've been reading the last few days or so is called something like The Decline of Expertise or the Death of Expertise perhaps. It's polemic, but it's challenging and it's thought-provoking. And I like to read. I love computer programming. I think computer science, although I'm not a computer scientist, but is fascinating. I like to think about and read about the potential impact of the of technology in particular computer and related technology on everything, cars and professions and and what have you. And so I like to do a little bit of modestly futuristic. And to some extent, history of the development of computer and technology I read. And I read a lot, you know, I'm a classical music fan.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“But there are no books, I have books on my shelf that I would never part with, but I don't reread them, or I rarely even look up things.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, that's a hard question. I don't really have, I'm not going to say any of my own books because I find it, if anything painful to reread my own, I recently... Some while ago, did a book of readings of my works. Selected works and to do that I had to read through all my own work, books and papers and such which I found very painful.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Gerard DeBro, who brought uncertainty to economics, but both traditional academic finance and traditional academic economics were very different. And so, in a sense, it was a matter of finding a home and building this whole new idea of financial, economics.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Academics? I came in from an academic viewpoint, and again, I was bringing economics into finance. As was Fred and as were some others, but in very early days, in a sense we were bringing uncertainty in the economics most economic theory was in a world of certainty where you knew when you put these inputs in, you were going to get those outputs out and the prices were known. So there wasn't a lot. There were early traces of dealing with uncertainty within economic theory, but only a few, and so I was part of a group, and there were many others, including traditional economists such as Canero and”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It always comes down to two. I've mentioned in our conversations. J. Fred Weston, Fred Weston. was an economist from Chicago, University of Chicago, in the finance department in the business school. And I was one of his research assistants as an undergraduate. And then when I took my PhD, I found one of the five fields could be in finance. So even if it was the business school, one of my five fields for my economics PhD was with Fred. And Fred and I were close and he was a huge influence. And then the other main influence was Armin Alchin, who was a microeconomist, brilliant, quixotic, quirky from whom I took microeconomics at the beginning of the PhD program. I guess I took it in the MBA program, who taught me to think like an economist. So, in many ways, the CAPM I can trace to those two people.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“and found a company, I think it was Learner Stores or Lerner Brothers or something. It was a women's clothing store. And they were in new management expansion to shopping models, whatever. And of course, not knowing at the time that things of that sort were supposed to be incorporated in the price. I went down to my local Merrill Lynch office and bought $500 worth of Lerner Brothers stores. Well, you know, of course, what happened? In three months it became three hundred dollars. And maybe that was the beginning of my suspicion that markets were efficient. I'm not sure. But I certainly told me that a career in investments as a practitioner, at least, was not for me.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh my that's difficult. All right, since we're talking finance, I'll tell you financial. When I was an undergraduate, I was an economics major, but I took a course, a beginning course in investments from a wonderful person, a man named John Clenden. And it was a very traditional finance course. And I was a junior, I think. And I thought, well, you know, this is pretty good. And I had $500, which at the time was a lot of money, which I'd saved up. I worked in garages and service stations and such to buy a car. And at that time, you could buy a car for $500. But for various reasons, I wasn't going to buy the car for a few months. So I thought, well, I'll do a little investment. And so I did my securities research as I was told.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is better than complicated. And who knows what the motivations of any of the partners or employees might have been, but there are times when, you know, if you think you've got an edge, you take a gamble knowing you might lose.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, from what I understand, their risk models were very complicated. And very sophisticated, as you might well imagine.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Different people have computed different numbers. I've heard thirty anyway, but it was way up there. And it was done in very Convoluted, sophisticated ways. It wasn't just a matter of how much money have you borrowed from the bank. So they had all sorts of complex positions. And I'll tell you, you know, both the academics there and the practitioners, and I've known some of each, were about as smart as you can get. Why it happened, who knows, but it certainly tarnished a lot of A lot of reputations”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Sophisticated and unsophisticated ways of getting leverage, but they all have the same. If you're really smart, they can make you a lot of money and it's slightly more probable that they will lose you a lot of money.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Let me tell you a pre story. I worked with him with a private family that actually was one of the early investors in long-term capital. And there came a point at which long-term capital said, and we were talking to Myron Schultz, who was involved there. Well, we're giving you and others all your money back. And we said we don't want our money back. We've made a lot of money even doing a great job, etc. And he said, no, I'm sorry, but we're cutting back on clients, we're men, etc. So reluctantly, we took our money back, and then everything broke loose. Long-term capital. It's very hard to tell from the outside But I take it just the simple version is that leverage can make you a lot of money and it can lose you a lot of money.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And if you can get in, then maybe you can get an edge, probably not 300 basis points, but an edge. But to be perfectly frank, the public pension funds can't get in a lot of these because they don't want the disclosures. So, but again, I consulted with Cal Purs for many, many years on risk analysis and performance analysis. And there are very good people in a lot of these organizations, and some of them I'm sure believe that's true, but I don't believe it's true. And I think it's an unfortunate thing. And I think that the problem, and you can look at the statistics on our websites, but it's crisis proportions.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“But my read, at least of some of the more recent ones, is that if you can get in the top X%, and I say this given the fact we're sitting in the offices of one of these.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Within these organizations, let's say the state pension funds. Honestly, I believe that you really should plan to on average get a bonus of 300 basis points net from hedge funds and private equity. You know, if you, I don't happen to be among them.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I won't go that far, but to show, I mean, maybe you should. I'll go that far. You'll go that far. You'll go that far.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I got a new website to provide. And we compute not only actuarial values But also what we call market values where we try to correct for this.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That will enable them to cook the books and make the situation look even better than it does now, which is a lot better than it really is, and may put a plug in there's a project at Stanford called PensionTracker. org. Where we go through this process for all the major pension funds in the country.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Has to kick in and precisely. And that's exactly, and you raised the point. So we really need to get that expected return of how can we do it. Well, private equity hedge funds, et cetera, we can take what we expect from the stock market and add 300 basis points, 3% more. Because after all, they're golden instruments. And that'll get our expected return up. And as I mentioned, there's a study I'm blocking now on the authors where they very carefully looked at pension funds. In great detail. And you can see it. You can see them. They're putting more money in those asset classes, not probably because they think they're wonderful, or maybe they don't even think they can get 300 basis points more than stocks, net-net. But because”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, who came up with that number? Okay, well, I want to complete the thought to your. Okay. So, you know, the politicians, if you will, and maybe the unions and maybe the people in the office of the chief actuary and the people running the pension fund. Our heavily pressured to make those liabilities, values as small as possible so that they look good relative to the value of the assets. They value the assets at market. That's fine. But the value of the liability. So let's see. If we increase our expected return, we can discount those promised payments at a higher rate and their present value will be lower and our funding will be better. Thereby reducing.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, no, I'm talking about just yes, including contributions, but future contributions. But if you just ask, well, what are the assets worth? Well, we know that. We have market values. What are the liabilities worth? I have promised Joe and the police force that in five years he'll retire and he'll get X. Dollars per month till he dies. What's that worth? Well, any economist would say, well, you get the actuarial tables, you figure out life expectancy, and then you discount those payments at the treasury rate. You claim you're going to make them. They're riskless. They're bonds. And they should be valued like bonds. No. The state actuaries take those claims, those payments. Discount them at the expected return of the fund.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is that remotely? You've got it. And as a matter of fact, there's some research out of a group in Europe, but on U.S. pension funds, you have this bizarre tail wagging the dog. The way public pension funds work is that the actuary comes up with, quote, an expected rate of return for the fund. And then does calculations using the assumption that you use that to discount everything you've got.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“There to find benefit plans, we have evidence that many, many individuals are not sufficiently funding their four K four hundred three B plans. Some don't even have access to any. And then it's sort of hard to know what people are doing with that money when they retire. But my guess is it's not a pretty picture.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“This world of choice, now constrained when you retired, you're not constrained at all generally. When you're working, you're constrained by the menu that your employer offers you. But the good news is you can choose lots of different things. The bad news is you can choose lots of different things. Right. And I think it's incumbent upon employers to at least try to limit your choice set within the 401K or 403B plan to sensible investments and to provide some sort of assistance so that to help you make informed choices. Now that's self-serving. I'm not involved with the financial engines anymore. But it's very frightening. I think we have evidence just as we have evidence in the public sector that employers in the public sector are not sufficiently funding.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“A supplement precisely And so, for good or bad reasons, we moved in the private sector. Now, in the public sector, we still have a preponderance, although it's changing slowly, of defined benefit. And that's an area which I've done some work also over the years and involved with a project that's working on it to this day at Stanford. And that's a really serious problem of its own. But let's deal with the private world. I mean, freedom's great. It's wonderful. You can decide how much to save. You can decide how to invest it. When you retire, you can decide what to do with the money, whether you're invested, annuitize it.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, when that trend first started, I mean, as you know well, and many do. 401k was never intended to be your main retirement vehicle.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Including one of our former PhD students. And they all say, yeah, that's a good idea. But I think one of the counter-arguments, well, you can do it, and you do do it, but it's a pain.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“What else? Well, that gets into the nuances of indexing and prices and such. But yeah, I mean, you'd certainly, I mean. Funds that I happen to use are Vanguard funds.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“They have two investments, one of which may require the world bond stock portfolio, I continue to badger my friends at some of the index fund companies to create a single fund. So I don't have to do it with four different index funds.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, well, again, as I mentioned, I'm focusing on retirees. And very few retirees seem to have the stomach for much more risk than that. And then I would mix that for those who want less risk with my preferred vehicle would be tips. Because inflation is a real danger for a retiree.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, yes and no. If you look worldwide, I don't have the current figures. I should have them, but it's somewhere around 55% bonds, say.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, if you want to know what we mentioned my current work, my ideal... Portfolio risky portfolio For an individual retiree, certainly who isn't. Desirous of taking a whole lot of risk. Is a portfolio of maybe four different index funds non US bonds and stocks? in more or less market cap proportions a global bond stock portfolio.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, yeah, I think the average investor should hold very broad based index funds. Begin with, and you should think about both retrospectively and prospectively what on average you might get from this or did get. And how much variation there was because that tells you something about how bad it could be, the two together. And so for that kind of a strategy, a sharp ratio is not irrelevant. It's worth looking at. But don't, you know, don't break it down into pieces. Just take the whole thing.”
2017-06-02 · Masters in Business · Interview With William Sharpe: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source