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Strategies & Market Trends : 50% Gains Investing

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To: bruwin who wrote (117830)2/4/2014 1:39:09 PM
From: BiomavenRead Replies (4) of 118717
 
Well yes, if you can magically buy near the bottom and sell near the top you will convincingly outperform the market. But no simple rule like a stop loss will do that for you - there will be just as many circumstances where it hurts you as helps you.

Just look at the Mutual Fund industry - all those funds with top-notch managers - and there is no evidence that those that outperform one year are any more likely to outperform the next.

There are a few people out there that can consistently outperform over many years - but they are few and far between. Buffett and SImons are two well-known investors that have convincingly demonstrated skill-based outperformance over decades, but there are not a lot of others out there. (Here on SI, rkrw consistently outperforms in small biotech).

Peter
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