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Old 04-26-2005, 10:16 AM
Leonardo Leonardo is offline
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Join Date: Mar 2003
Posts: 15
Default Re: Did Sklansky say he Could have won a Nobel?

What on earth are you talking about? After the effects of compounding, not before?? You really have no clue what you are talking about. If the market return is a compounded rate of 10% per annum for 20 years and you get 13% for 20 years, you have beaten the market by 3% per year on a compounded basis. If the average return is 10% and you get 13% you have beaten the market average by 3% on an average basis.Either one is very difficult and essentially the same thing because the change in the index from year to year isn't so large that the compounded rate will be wildly different from the average rate over 20 years. As for just doing the opposite of what the market is doing - you are guaranteed to fail if this is your strategy. What about when the market is correct? The market is more often right than wrong. The millions of people sitting around analyzing companies arent fools. You are the fool for thinking that they are.
As for whoever said am i saying that 99.9 % of stock market investors are loser, no that is not what I am saying. The stock market is not a zero sum game.It is a positive sum game. It could be considered approaching a zero sum game around the average market return, but brokerage costs make that game less than zero sum. The fact is that beating the market by any meaningful amount over any meaningful amount of time is EXTREMELY RARE. Most investors tend to get right around the mean return, the results are not largely dispersed for investors that have a meaningful amount of money in the market and are actively trying to beat it. Of course some mom and pop investors who stick all their money into one stock for whatever reason and just leave it there are going to beat the index by pure luck. It can be compared with poker. From what I read I think that Phil Ivey beats the game for a meaningful amount of money and has done for a meaningful amount of time. If I was to sit in the big game at the Bellagio for a couple of hours and win, does that make me a winning poker player. Of course not. Only players who have spent a meaningful number of hours and beaten the game for a meaningful amount of money can be considered winners. The players in the stock market who are actively investing over a twenty year period are the people to look at when considering investing and ones ability (rather than luck) to beat the market. Of the people investing long term with a meaningful amount of money, those that beat the market are few and far between, an generally get paid a large sum of money for that ability. Just see how many you can name.
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