3 ms·
I often wonder how anyone can ever make it through their day, if they don't have a physics degree. My friend Rod Schmidt once pointed out to me that it is impo
by MichaelCrawford 11y ago
I often wonder how anyone can ever make it through their day, if they don't have a physics degree.
My friend Rod Schmidt once pointed out to me that it is impossible to beat the stock market "because everyone has complete information".
I replied that while strictly speaking it's true that everyone has access to complete information, they don't actually avail themselves of it. For example, just after Red Hat went public, another company with the word "Red" in its name enjoyed a significant uptick in stock price.
"The investors think Red Hat is the only place to get Linux," said my friend Dave Johnson, an experienced investor, "But they're too dumb to know which 'Red' company actually sells it."
I am completely convinced that I know how to beat the market. I haven't invested yet as I don't have the cash to get started, but I will eventually.
The method I've developed is based on completely public information - that is, what you would need to beat the market is readily available, in the plain sight of everyone.
What I have done is correllated a number of factors that are not commonly considered by stock traders. It's not that they couldn't use these factors, it's that they don't.