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So what if you know your balance sheet, income statement, FCF, capex, when you are analysing Enron or Lehman Brothers? If you are so sure Facebook is overvalue
by cdf 13y ago
So what if you know your balance sheet, income statement, FCF, capex, when you are analysing Enron or Lehman Brothers?
If you are so sure Facebook is overvalued, how big is your short position? Guaranteed win right?
Can you guarantee Microsoft won't swoop in to buy Facebook at 5x over "fair value"?
I think we have reached the point where is conventional wisdom that "professional" fund managers struggle to outperform index funds, so you can mock the financially illiterate, but I hope your investment returns regularly outdo monkeys throwing a dart.
- confluence 13y agoI own puts. Outdoing index funds is easy. Investing is just like any other job. You do something cheaply than sell it for more. If the vast majority of fund managers are below average, than so to are the vast majority of doctors, lawyers and engineers. Investing isn't a special industry. Most surgeons are actively bad for their patients as compared to the average. Most engineers are bad for their projects compared to the average. Most lawyers are bad for contracts compared to the average. That's just how the world works.