What does it mean?
Everything in finance is an abstraction. Until it isn’t. Meaning money is the circular relationship between a purchase and a sale. Which is, technically, an abstraction (no matter what you do about it) (no matter whether you are a buyer or a seller) (you have to be one or the other). If, neither, then, both.
Conservation of a Circle
This is because the abstraction always looks like this:
Which is the circular relationship between something concrete and something abstract:
This is because between (and around) every buyer and seller there is a mandatory circle. Conservation of the Circle, to be, technically, correct:
Which explains why you don’t need ‘earnings’ to produce ‘alpha…’:
That is, a buyer is always engaged by (has a circular relationship with) his or her expectation about reality. This demands a tangible relationship with ‘time.’
Meaning you cannot have tangible without intangible (explaining the value of intangible assets) (alpha in general).
This is because complementary identity (conservation of an uber-simple circle) is what produces, what a human labels, Reality. Financial and otherwise. Complementary identity, for example, produces the buyer and the seller. Thus, ‘alpha.’
Therefore, we’re, all of us, always ‘seeking alpha.’ Where ‘alpha’ is the circular relationship between expectation and realty. Producing, over time, a mutually-beneficial ‘reality’ for all (both ‘buyer’ and ‘seller’).
Where you cannot have one without the other (both without either) because you cannot have a circumference without a diameter (zero without one) (one without two).
Buy and-or Sell
Thus, ‘pi’ is the basic asset in finance. Which explains, why, we ‘sell to open,’ and ‘buy to close,’ in order to complete the corresponding liability (cover our assets) (produce alpha).
And, that’s all there is to ‘alpha.’ And ‘beta.’ Everything in finance. Everything in Reality. Everything in Nature. (All of the ‘greeks’ that describe the basic operation (comparison) called Nature.)