You Are Indeed Too Overconfident

The article is old, but I believe that we can still learn from it. Face it: You cannot beat the market. If you do, I'm sure the conclusion is very retrospective. Turn things around. Look at it introspectively. Sure your "over"-performance wasn't a sign of true alpha rather than just excessive risk taking, and thus a risk premium.

People on Main Street should consider their investment as being very static. That is, you buy and hold - and as the Oracle of Omaha would put it: "Your favorite period of holding time is forever".

You are saving up for your retirement and whatever bequest motives you might have.

As I'm writing this it suddenly hits me: Investing is pretty similar to training. I've trained with a lot of different guys, and honestly, the so-called "routine-shoppers" that never stuck to a program for more than two weeks never really obtained any solid gains. Whether it was a running or at strength training program. Similar to changing your portfolio - every time you switch program there is a transaction-cost.

The article's abstract ends with the following sentence: "Our central message is that trading is hazardous to your wealth."

Well, that sounds a bit harsh. I think day-trading is hazardous to your wealth.

There are a few things I want to add. Suddenly, I'm reminded of something NNT wrote in his book The Black Swan.

To be continue...

Shocked, But Not Surprised

Of Course.

Now Be Honest With Me

Firms can certainly be TBTF because of the systemic risk their default might impose. But girls, naah, they can't really be TBTF. Just use your imagination.

All Hail The "IMO"

This blog will contain my reflections on what I read, and reflections with less obvious motivation sources.

Expect thoughts within the boundaries of bodybuilding, dieting, supplements, economy, different kinds of literature, other blogs, random articles, music and maybe some written poetry… but most likely not.