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Larry Swedroe: Alpha And The Paradox Of Skill

FYI: What academics refer to as the “paradox of skill” means that, even as overall skill level rises, luck can become more important in determining outcomes if the level of competition is rising also.
Regards,
Ted
http://mutualfunds.com/education/alpha-and-the-paradox-of-skill/

Comments

  • I have always thought (well at least fora few years) that People like Peter Lynch had better information some of which would be illegal today because everyone must get this stuff at the same time. Therefore its harder to get an edge and hence harder to beat passive by much more than expenses. Plus everyone makes mistakes even the best of investors so shareholders in Sequoia like me may not recover from one mistake made in a long career.
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