FYI: HERE’S A MADNESS to crowds—but also great wisdom.
Each of us knows very little about the world. But between us, we know an extraordinary amount. Every time we buy or sell a stock, we each draw on the knowledge and insights we have, and we effectively vote on whether we think the stock’s price should be higher or lower. Because today’s market prices reflect our collective wisdom, it’s hard to find shares that are badly mispriced. Result: Over the long haul, we’re highly unlikely to overcome the drag from investment costs and outperform the market indexes.
Regards,
Ted
https://humbledollar.com/2019/10/crazy-like-a-fox/
