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How about no. You're entering a field where professionals working full time struggle to beat the market, what's saying that you, a folder of 10-k's, and a copy

by nether 10y ago

How about no. You're entering a field where professionals working full time struggle to beat the market, what's saying that you, a folder of 10-k's, and a copy of Ben Graham are going to beat them? You could probably spend a lifetime studying investing and still come up short, because you don't have the resources or mentoring that the pros have.

phyalow 10y ago
Wrong that's all you need. In fact according to Peter Lynch you have a better chance of alpha as you dont have to deal with all the bs a PM at a big fund has too.
- pfarnsworth 10y ago
  The markets that Peter Lynch traded and the markets today are completely different.
  - phyalow 10y ago
    Sigh, trading vs. investing... Also if you make a statement like that I am sure you are unfamiliar with his thesis and methodology.
unknown_apostle 10y ago
Well definitely a valid response. But it still seems like a bigger problem to beat professional traders using Zipline, than to spend time looking out for a good company that is being sold for a price that I really like. In the latter case, investing and looking for value, it seems to me like an amateur can even give himself a little edge over the pros. First, it's a worse fate for most professional money managers to miss out on some bull market, than to go down together with all his colleagues. Second, amateurs working with their own money are not evaluated every quarter or even every year. They can just wait and keep looking if unsure. There are no mandates or arbitrary limitations, so the amateurs are free to look for value wherever they can find it. They can look in places that would require more patience, or that have a bit less liquidity or some more volatility (because they will typically have less money to move in/out the stock). Of course, the pro will definitely have benefits in terms of legislation, taxes and lowering the costs of research vis. the amount of money being invested. But in the end: does the extra information and non-GAAP stuff that the pros use, help so much over common sense and a decent understanding of accounting? (That's a genuine question, not a statement.) In fact, does succesful investing even involve outsmarting everyone else in the same way that trading does?
gnaritas 10y ago
Professionals aren't playing the same game as amateurs are, so your logic is flawed.

by nether 10y ago

phyalow 10y ago

Wrong that's all you need. In fact according to Peter Lynch you have a better chance of alpha as you dont have to deal with all the bs a PM at a big fund has too.

pfarnsworth 10y ago
The markets that Peter Lynch traded and the markets today are completely different.
- phyalow 10y ago
  Sigh, trading vs. investing... Also if you make a statement like that I am sure you are unfamiliar with his thesis and methodology.

unknown_apostle 10y ago

Well definitely a valid response. But it still seems like a bigger problem to beat professional traders using Zipline, than to spend time looking out for a good company that is being sold for a price that I really like. In the latter case, investing and looking for value, it seems to me like an amateur can even give himself a little edge over the pros. First, it's a worse fate for most professional money managers to miss out on some bull market, than to go down together with all his colleagues. Second, amateurs working with their own money are not evaluated every quarter or even every year. They can just wait and keep looking if unsure. There are no mandates or arbitrary limitations, so the amateurs are free to look for value wherever they can find it. They can look in places that would require more patience, or that have a bit less liquidity or some more volatility (because they will typically have less money to move in/out the stock). Of course, the pro will definitely have benefits in terms of legislation, taxes and lowering the costs of research vis. the amount of money being invested. But in the end: does the extra information and non-GAAP stuff that the pros use, help so much over common sense and a decent understanding of accounting? (That's a genuine question, not a statement.) In fact, does succesful investing even involve outsmarting everyone else in the same way that trading does?

gnaritas 10y ago

Professionals aren't playing the same game as amateurs are, so your logic is flawed.