…result of luck and also likely won’t be repeatable. Consider two contrasting scenarios that perfectly illustrate a crucial lesson for investors. The first involves a day trader who experienced remarkable…
Search Results for: Luck
Failure Points in Investing: Learning from the James Webb Telescope’s Journey
…people who have generated massive wealth by investing in some of these names. But, that can be more luck than skill and it’s important to not let a serendipitous stock…
What Kobe Bryant’s Mantra of “Never Get Bored with The Basics” Can Teach Investors
…in the world of investing, the distinction between skill and luck is of paramount importance. Because there are so many variables at play in investing, luck always has some role…
Buffett’s Success: A Good Decision Every 5 Years
…compounding interest, the luck of being born in the U.S., and basic strategies—as contributing to his success, rather than his own genius. Buffett often advises new investors to imagine a…
Six Stages of Bubbles
…do with luck than skill. Stage Three: The bubble is inflated by investors driven by FOMO, and the influx of capital drives prices to be wildly overvalued. Investors tend to…
Value Investing’s Golden Era Returns
…value investor—folded his investing fund, lacking anything of value to purchase. But eventually, the Nifty 50’s luck ran out with the Arab Oil Embargo in 1973 and the period of…
Were Great Returns The Result of Skill or Luck?
Determining if a manager produced high returns thanks to their expertise or because of luck is a key piece of information for investors who are selecting which firm to give…
What Seeing Galaxies From “Far, Far Away” With The Webb Telescope Can Teach Us About Investing
…previous and upcoming podcast guest, Kai Wu, of SparkLine Capital has done research on how intangibles and innovation can generate alpha. Good Luck Picking Winners Galaxies have lifespans, and while…
Behavioral Bias Lessons
…that choosing a stock whose price skyrocketed indicates brilliance on the part of the investor, rather than just luck and a market pumped full of cheap money. “Herd Behavior”—going along…
Active Managers’ Winning Streak Won’t Last
…So while the stories abound of stock pickers beating the market this year, it’s best to remember that it’s likely more luck than skill that’s sustaining their current winning streak….