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It should be true of the average (median) investor as well. This is nearly tautological in fact.
by samatman 3y ago
It should be true of the average (median) investor as well. This is nearly tautological in fact.
- voisin 3y agoThe point isn’t that the average investor in a given year will perform at the market average (this is what I think you are referring to by the tautological claim). The point is that over time the correlation between winners (retail or professional) one time period to the next is essentially zero.
- samatman 3y agoMy main point was that the quote you were "fixing": > It turns out that the average person is just not very good at picking stocks Is accurate, and not in need of correction. As a sibling comment pointed out, the average for professionals is higher: by almost exactly what they cost, as it turns out. For various ergodic reasons, that means that an investor without personal alpha should stick with index funds.