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Search Results for: Luck

Six Stages of Bubbles

January 6, 2023

…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…

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Value Investing’s Golden Era Returns

December 15, 2022

…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…

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Were Great Returns The Result of Skill or Luck?

October 25, 2022

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…

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What Seeing Galaxies From “Far, Far Away” With The Webb Telescope Can Teach Us About Investing

July 27, 2022

…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…

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Behavioral Bias Lessons

June 14, 2022

…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…

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Active Managers’ Winning Streak Won’t Last

June 10, 2022

…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….

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The Kidd Who Went Toe To Toe With Buffett

January 21, 2022

…Zweig asked him whether his success is due to luck or to skill, Kidd said, “It’s when you’ve been fortunate enough to make an investment in a great company, and…

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My Biggest Lessons From 2021

December 15, 2021

…invincible. You tend to attribute all of that outperformance to skill, when in reality much of it is luck. I learned that lesson the hard way. Probably the biggest change…

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Rock-Star Investor Finds Her Flock

September 1, 2021

…tells us. Though some predict her luck may run out soon, Wood continues to look for new opportunities and told Bloomberg News in May, “Keep the faith.” Get Full Access…

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Zweig: When High Returns Are Not Enough

July 26, 2021

…earn such sizeable returns, he argues, an investor needs “enormous skill, phenomenal luck and the nerves and reserves to withstand bloodcurdling losses. In other words,” he says, “you have to…

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Combining Sentiment and Fundamentals: How Quant Models Uncover...
By Justin Carbonneau (@jjcarbonneau) — In my previous article, "Unlocking the Market's Mood," we explored various methods of gauging investor sentiment in stocks. In this article, we'll delve into how different investing models on Validea employ some...
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The Surprising Investment Factor That Defies the Risk-Return...
By Jack Forehand, CFA, CFP® (@practicalquant) — There are some core principles that are supposed to govern investing. If I were to ask you to come up with the most important one of those principles off the top of your...
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By Jack Forehand, CFA, CFP® (@practicalquant) — We all want to own great companies. We look at Warren Buffett’s success and want to own the same types of businesses he did. We love high returns on capital. We love great...
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Unlocking the Market’s Mood: Tools for Measuring Stock...
By Justin Carbonneau (@jjcarbonneau) — In our recent podcast with Ray Micaletti, we talked about his relative sentiment approach to investing. Ray uses retail and institutional investor sentiment to build quantitative investment strategies. That conversation, along with...
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