Mr. Whitney has been a successful software entrepreneur since high school in 1983 and later as an
investment professional since 1994. He bootstrapped his company, which became listed in
Software 500 as #372 in 1997 and #365 in 1998.
In a highly-innovative segment of the mainframe system managemnt industry, his rival was bought by
IBM in 1999. Mr. Whitney learned how
to diversify a large position in discussions with Goldman Sachs'
Private Client group and he learned risk management directly with his own personal resources.
Jay enjoys teaching, whether mentoring other professionals, 2nd graders, or using his (now expired) California
teaching credentials; he is one of the few people who can bring this to reality:
This somewhat simplified partial differential equation is important for certain types of investing. It
is useful when solving for the price of the instrument V, or solving for volatility σ,
given the fixed inputs time t, underlying value S, and the
risk-free rate of
returnr. The simplifications are that it assumes that risk (r) never occurs, and that
there is no intrinsic return (such as a contractual payment like a dividend) on the underlying instrument.
Jay enjoys explaining complex subjects, whether in mathematics, physics, software engineering or investing,
while (almost) always adding his touch of philosophy and policy. With respect to investing and other financial
matters, he believes that people and other entities (businesses and such) survive by providing for their needs.
In society the means of exchange to provide for survival is money, and money is itself achieved through profit.
Regardless of the type of entity, the literal Merriam-Webster definition of profit as a noun is always
prof · it noun, often attributive
: money that is made in a business, through investing, etc., after all the costs and expenses are
paid : a financial gain
: the advantage or benefit that is gained from doing something
With respect to investing, Mr. Whitney likes to say that, "Even with the math, eventually you just feel
it, then look with the lenses of fundamental and technical analysis, sector momentum, trend patterns, and with the fine eye of
experience." With respect to life, Mr. Whitney likes to say that, "Experience is what you get when you don't get what you