“We have just encountered what I call the catch-22 of investing: Any statistical methodology that directly (fundamentalist approach) or indirectly (technical analysis approach) estimates fair value and that is widely used cannot help you beat the market. Economists call this the No Free Lunch principle. Competition among investors leads to a situation in which knowledge in the public domain can’t lead to above-average investment returns. There is no information you can find in a book on investing or trading or you can learn at an investment seminar that will by itself help you do better than the market. Notice that this also means that it is even impossible for you, an average investor, to purchase superior investment performance by entrusting your money to a professional money manager.”
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