4 ms·
I disagree - I was a value investor for a number of years from the Ben Graham/Buffett school of thought. But the last 5 years or so - with the ramp up in tech
by sharadov 11mo ago
I disagree - I was a value investor for a number of years from the Ben Graham/Buffett school of thought.
But the last 5 years or so - with the ramp up in tech stocks, I know enough people who've done really well with indidividual stock picking.
In fact there was a paper out that said 10% of retail investors can consistently beat the market - it's a mixture of skill, discipline and luck.
- raw_anon_1111 11mo agoThe myth of Buffett just being a smart investor who anyone can duplicate and that’s why he gets outsized returns needs to die. https://www.forbes.com/sites/adamhartung/2014/11/19/why-you-cant-invest-like-warren-buffett-and-shouldnt-try/ https://www.forbes.com/sites/adamhartung/2014/11/19/why-you-...
- potamic 11mo agoWell, the last 5 years or so is the epitome of a bull market. Did the paper say the same set of people consistently beat the market over long periods of time or did it say at any time about 10% of investors happen to beat the market?
- sharadov 11mo agoPaper came out in 2002 - https://www.bus.umich.edu/pdf/mitsui/nttdocs/coval-shumway2.pdf https://www.bus.umich.edu/pdf/mitsui/nttdocs/coval-shumway2.... Not sure which time period they studied
- potamic 11mo ago6 year time period between 1990-1996. Would have been interesting to see how these results would have fared across the 2000 crash. But I don't think the paper claims that they beat the market. What they are concluding is that you can classify investors as skilled and unskilled, with the skilled group able to achieve returns consistently. But whether those returns can beat the market, they say the evidence is limited.