What counts is what you do with your money, not where it came from.
From Merton Miller
Junk bonds prove there's nothing magical in a Aaa bond rating.
I should mention that I am a member of the board of directors of Dimensional Fund Advisors.
Of course. I favor passive investing for most investors, because markets are amazingly successful devices for incorporating information into stock prices.
So everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.
Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't.
To beat the market you'll have to invest serious bucks to dig up information no one else has yet.
You only need to make one big score in finance to be a hero forever.
But in practice, if often comes down to not suffering a loss as big as the huge gain you made a while ago.
I can't speak for them, of course, but I believe that most economists would accept the view that, while you sometimes can make a score by sheer luck, you can't do it constantly, unless you're willing to put the resources in.
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