6 ms·

And the active funds would have noticed Enron how?

• kgwgk 9y ago
  Not a good example: https://en.wikipedia.org/wiki/James_Chanos#Enron_collapse https://en.wikipedia.org/wiki/James_Chanos#Enron_collapse
  • ceejayoz 9y ago
    Also not a good example. Individual fund managers, financiers, etc. often make individual correct (or lucky, sometimes) decisions. It's their ability to do that continuously for decades that's very much in doubt.
    • walshemj 9y ago
      I think there where enough signs of enron being doddgy
      • ceejayoz 9y ago
        Given that individuals who predicted it are notable enough to have a Wikipedia entry, I'd say that's hindsight talking.
  • jogjayr 9y ago
    That just moves the problem away from stock-picking to manager-picking. How do you pick a "good" manager as a retail investor? A winning track record could just be the result of survivorship bias.