4 ms·

Right, the point is that his manager consistently beat the market (even if by a small amount). Not that I knew this before just now.

greenshackle2 9y ago
I wasn't able to find actual data on his performance, what I found is that: "Cascade does not publicly disclose its performance results". If someone has actual numbers I'd be happy to see them.
hinkley 9y ago
It occurs to me that maybe the way to beat the S&P is to focus on the losers and not the winners. That is, if you could figure out which listed companies were going to fare the worst and build a partial index fund with the rest, you'd beat the index. Similar research style to short selling but with less downside.
- Retric 9y ago
  I don't think it's any easier to find companies that will under preform. Apple stock seems over priced right now with P/E:17.66 and not so great growth prospects, but so does Amazon and Facebook and the rest of the S&P 500 when you take a close look.
- gozur88 9y ago
  In theory a company's expected poor performance is already priced into the stock.
- dandr01d 9y ago
  If picking the winners is impossible, how would picking the inverse set (e.g. losers) be any different?
  - apetresc 9y ago
    I'd assume it's because most companies aren't big winners or big losers.
- scythe 9y ago
  In order to beat the market, you have to know something it doesn't already know. But eventually, it's (they're) going to learn that, too, so you'll have to learn something new. The only way to keep beating the market is to gather information faster than the "average" and keep up with the information that it has, relative to what you invest in, although usually you can accomplish most of the work in the latter half (beta, IIRC) by watching the market itself. In brief, as Martin Shkreli put it: invest in yourself...
- GCA10 9y ago
  Unexpected takeovers make this much harder than it seems. For example, Twitter's prospects on its own don't look so great right now. But if that induces you to avoid owning Twitter, you miss out on a quick profit (perhaps even a big one!) if some larger company decides to buy it.
deleted 9y ago
[deleted]

greenshackle2 9y ago

I wasn't able to find actual data on his performance, what I found is that: "Cascade does not publicly disclose its performance results". If someone has actual numbers I'd be happy to see them.

hinkley 9y ago

It occurs to me that maybe the way to beat the S&P is to focus on the losers and not the winners. That is, if you could figure out which listed companies were going to fare the worst and build a partial index fund with the rest, you'd beat the index. Similar research style to short selling but with less downside.

Retric 9y ago
I don't think it's any easier to find companies that will under preform. Apple stock seems over priced right now with P/E:17.66 and not so great growth prospects, but so does Amazon and Facebook and the rest of the S&P 500 when you take a close look.
gozur88 9y ago
In theory a company's expected poor performance is already priced into the stock.
dandr01d 9y ago
If picking the winners is impossible, how would picking the inverse set (e.g. losers) be any different?
- apetresc 9y ago
  I'd assume it's because most companies aren't big winners or big losers.
scythe 9y ago
In order to beat the market, you have to know something it doesn't already know. But eventually, it's (they're) going to learn that, too, so you'll have to learn something new. The only way to keep beating the market is to gather information faster than the "average" and keep up with the information that it has, relative to what you invest in, although usually you can accomplish most of the work in the latter half (beta, IIRC) by watching the market itself. In brief, as Martin Shkreli put it: invest in yourself...
GCA10 9y ago
Unexpected takeovers make this much harder than it seems. For example, Twitter's prospects on its own don't look so great right now. But if that induces you to avoid owning Twitter, you miss out on a quick profit (perhaps even a big one!) if some larger company decides to buy it.

deleted 9y ago

[deleted]