…because of any skill I had, though. It was purely a matter of luck. What I think I was missing from that article was an acknowledgement that stay the course…
Search Results for: Luck
Tracking Fund Performance is Tricky
…market,” the article says, “but whether they do so by skill or luck is harder to determine.” The article cites results from S&P’s biannual persistence study, a survey which examines…
Lessons From Our Most Read Five Questions Interviews
…years. There is probably no better example of this than timing luck (which we discussed in more detail in the interview). Timing luck is the idea that when you rebalance…
When Warren Buffett Thanks You for “Client Alpha”
…an acknowledgement that not all the moves or complexities of the market can be easily explained. Understanding the Role of Luck: Luck plays a big role in investing (click here…
Investing Lessons from the Best Poker Players
…enough about overall profits. Duke argues that luck plays a big role in both poker and investing, adding that both traders and poker players need resilience to deal with uncertainty,…
Behavioral Finance and the Investment Process
…A lot of luck is involved.” She recounts her own strong performance as a tech portfolio manager in the early 2000s, adding, “but when the market started to downturn and…
The Facts About Buybacks
…here is my attempt to write an article about buybacks without stirring up any controversy. Wish me luck. What Are Buybacks? Before we debate the merits of buybacks, it is…
Five Questions: Hidden Risks in Investing with Corey Hoffstein
…major index provider has. This means that there is a huge amount of random luck embedded in benchmark results. With the magnitude of dispersion that timing luck can create, it’s…
The Danger of Judging Decisions by Their Outcomes
…generate the best results. The reason is that investing is not just a game of skill, especially over shorter-term time horizons. Luck also plays a significant role in determining investing…
Roger Ibbotson on the Price of Popularity
…the cycle begins again. The article concludes: “Investing is hard. Assets are usually unpopular for a reason and finding the ones that will turn around requires both skill and luck.”…