When Steve Cohen speaks, Wall Street listens. At a recent Goldman Sachs event, the hedge fund titan offered a rare look into his mindset. And while the times have changed, Cohen’s edge comes down to timeless principles — straight from the man himself.
“My interest in the markets started really young,” Cohen explained. “I had grandparents that used to talk about stocks they owned… I started hanging out in a brokerage firm in my hometown.” That early exposure evolved quickly. “I used to want to stay home from school and watch the tape… I learned to watch the tape. Now the world’s different today… essentially what it really was, was pattern recognition.”
That skill launched his career. “I was lucky enough to be hired by a local brokerage firm when I was 21… I was able to buy stocks, and I said, why am I hedging? Because I could sell it higher the next day.” He added, “I would never, ever allow anybody in my firm at that age to do that.”
Cohen’s investment philosophy has evolved. “There was so much more alpha 30 years ago… we used to take so much risk… But today we run completely differently. We’re much more conservative.” Why? “Now it’s much more competitive.”
As markets matured, adaptability became essential. “Most of the people I was either hired or competing against in the nineties are not in business today. Because they didn’t adapt… you’ve got to be in a constant state of learning.”
On today’s landscape, Cohen is clear: “We’re all somewhat headline-driven right now, which is a hard way to run money.” He’s cautious. “We expect slowing growth… even in ’26, we only expect growth in, say, the 1.5% range… I’m somewhat concerned on a short-term basis.”
Still, there are bright spots — especially AI. “You could already start hearing about the margin benefits that companies are going to accrue from implementing these tools… This is a technology cycle that’s probably going to be long-lasting, have duration, and going to have a massive effect on how we live our lives today.”
For investors, that means opportunity. “You can express these bets in all the big names… They’re not expensive… probably the winners.”
He’s also betting on private credit. “I think there’s a real opportunity there, a huge TAM… I’m really excited about that possibility too.”
Ultimately, Cohen’s focus is on people. “Trying to figure out what’s going on in people’s minds is really tough… So I think, you’ve got to ask… If I can create solutions to their problems… I’m way ahead of the game.”
At 69, Cohen isn’t slowing down. But he’s clear about one thing: “There is absolutely no shot” he returns to trading. “Been there, done that… The firm benefits so much more by me being free to have these conversations.”
You can watch the entire interview here:
For all the latest news and podcasts, join our free newsletter here.
Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:
