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PRODUCT.|PHILOSOPHY.|LIFE.

Alpha

In the world of investing, beta is the return on investment that the market provides. That is, if we invest our money in an index fund that mimics the market, then the return we get is the beta.

Any decisions we make to beat the market, results in our Alpha, which is the excess return we generate on top of the market return. The Alpha can be negative, if we generate a return worse than the market (which many investors do).

In the world of work, the beta is what can be achieved without our intervention. Even if we're not in the role, this work can be done. Like a warehouse robot sorting items in an Amazon warehouse or a Midjourney creating images from text.

The Alpha is the value we bring to the table.

Advancements in technology is constantly increasing the beta, forcing us to find our Alpha.

We stay relevant by finding ways that we can add value beyond what can be achieved without us.

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