Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (1473)	9/21/2006 9:14:51 PM
From: George Statham	Read Replies (1) \| Respond to of 20435

That's good. I think at one time mutual funds would advertise that they had a 25% per year gain. In the trip example, most people would say 90MPH for the second mile in order to average 60MPH for the trip. But the answer is that it can't be done. The moral of the story is that you can't average the averages and get anything meaningful. The real problem doesn't really have anything to do with time. If you bat 1.000 and I bat zero, what's our 2 person team batting average, .500? The answer is you can't tell because we don't know how many at bats each of us had. For Steve's picks, his 5.22 gain is 10% of 50. But we've switched from talking about a $50 basis to $100 basis.