That's very interesting-- I've posted it to a rationalist group to see what they say.
I think the conclusion is that people should settle for the default rate of return instead of chasing extraordinary profits, but it might not work out that way.
The so-called "Stock Market" is a casino, nothing more, nothing less. As Warren Buffett* advised, the best strategy for small investors is to buy "good" stocks and hold long term (until you see negative indications). Active trading is very likely to lose you money b/c you don't know who's controlling things, ... well, pretending to control things (in their own minds is the only place they control). "Investing" in the market tweaks the same things that obvious gambling does. And those who can't quit when they've made a good profit will end up losing. It's not b/c of smarts that some "win big", it's luck.
It was probably Buffett. He followed a strategy like that for himself, looking for companies he could buy and ignore for five years or more because they were so reliable.
(no subject)
I think the conclusion is that people should settle for the default rate of return instead of chasing extraordinary profits, but it might not work out that way.
(no subject)
As Warren Buffett* advised, the best strategy for small investors is to buy "good" stocks and hold long term (until you see negative indications). Active trading is very likely to lose you money b/c you don't know who's controlling things, ... well, pretending to control things (in their own minds is the only place they control).
"Investing" in the market tweaks the same things that obvious gambling does. And those who can't quit when they've made a good profit will end up losing. It's not b/c of smarts that some "win big", it's luck.
* pretty sure it was him.
(no subject)