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Sure, but insider trading is illegal. So let's say you can only rely on publicly available info, which everyone else has. Then "unique insight" is financial an

Sure, but insider trading is illegal. So let's say you can only rely on publicly available info, which everyone else has. Then "unique insight" is financial analysis, plus macroeconomic analysis, etc. In other words, if everyone have access to the same info, you can only consistently do better than the market by consistently having better analysis than the market. Everyone is seeing the same info, so you don't do better by seeing some piece of info others are not seeing, but by using different weights in your analysis than the market is using. And even in those cases, the market might stay irrational longer than you can stay solvent.

rsp1984 10y ago
You work with an oversimplifying model of reality. Say you've worked in a specific industry for a long time and you know all the players. You know where the technology is, what the challenges are and where the tech is going. You know how key companies are managed, you have an idea about their goals and strategies. You know who's best positioned for what's coming. This is just general knowledge that you've acquired through your job over the years. Now say you've made enough money and retire. Because you know a thing or two about your industry you decide to buy or sell some stock. Can this be called insider trading? Perhaps. Is it illegal? Most likely not. Can you derive alpha from it? Hell yea.
- ForHackernews 10y ago
  Why aren't you super rich, then? If that's really true, then go do that thing you said.
  - your_ai_manager 10y ago
    Straw man
- ucaetano 10y ago
  And how many others have done exactly the same and are writing stock picks or selling industry consulting? Again, unless you are confident that you're a better expert then everyone else, you shouldn't think you will beat the market with just public info. Now if you're saying that you keep getting updates insider information from the entire industry WHILE you're trading, well, then you're back to the "insider info" part.

rsp1984 10y ago

You work with an oversimplifying model of reality. Say you've worked in a specific industry for a long time and you know all the players. You know where the technology is, what the challenges are and where the tech is going. You know how key companies are managed, you have an idea about their goals and strategies. You know who's best positioned for what's coming. This is just general knowledge that you've acquired through your job over the years. Now say you've made enough money and retire. Because you know a thing or two about your industry you decide to buy or sell some stock. Can this be called insider trading? Perhaps. Is it illegal? Most likely not. Can you derive alpha from it? Hell yea.

ForHackernews 10y ago
Why aren't you super rich, then? If that's really true, then go do that thing you said.
- your_ai_manager 10y ago
  Straw man
ucaetano 10y ago
And how many others have done exactly the same and are writing stock picks or selling industry consulting? Again, unless you are confident that you're a better expert then everyone else, you shouldn't think you will beat the market with just public info. Now if you're saying that you keep getting updates insider information from the entire industry WHILE you're trading, well, then you're back to the "insider info" part.