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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Wyätt Gwyön who wrote (48912)11/14/2001 5:50:43 PM
From: Pirah Naman  Read Replies (2) of 54805
 
large cap growth has been the second worst performer in US equities since 1926. only small growth was worse. small value did best, followed by large value. these are the results spit out from the terrain of the entire market over its modern history, and the findings are highly statistically significant. you can check it out--read Fama/French.

They may be statistically significant, but there are flawed from a perspective of putting them into practice. F&F ignored transaction costs and spreads, which have historically been huge on microcaps.

please show me the statistically significant results from academic studies showing that people can identify underpriced stocks in advance in today's market according to gorilla game theory and make massive profits on them.

Of course there aren't any. How could there be any at this time, and why would there even be such a study?

I think people in general are expecting too much from GGing. It is an analytic method to reduce company specific risks when investing in a certain industry. It isn't a stand alone formula for investing success. People who rely on it exclusively are adding risk; people who judge it as a stand alone formula are constructing a straw man argument.

- Pirah
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