Investing luck – be the casino house and not the guest
In his book, “The Success Equation”, Mauboussin opined that a lot of activities fall along a spectrum with pure luck one end and pure skill on the other end.
Chess is an example of an activity that depends on pure skill to win. The lottery is an example of an activity on the other end of the spectrum that requires pure luck to win. Most activities fall in between these two ends. He puts investing nearer the pure luck side
What does this mean for the investor? If you invest blindly, you are depending on pure luck. Those with the investing skills will do better than those who invest blindly.
Conceptually you want to be the casino owner with the better odds on your side rather than the casino guests. You can achieve this by developing your investing skills. The best way to develop your investing skills is practice and more practice. This is why looking at investment case studies helps.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
