tag:blogger.com,1999:blog-5880610.post5060920942218957192..comments2024-01-13T18:57:18.243-05:00Comments on Information Processing: Efficient Frontier and William BernsteinSteve Hsuhttp://www.blogger.com/profile/02428333897272913660noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5880610.post-82758666999650171652009-10-27T01:50:22.431-04:002009-10-27T01:50:22.431-04:00Benjamin Graham disagreed with #2. From p.570 of t...Benjamin Graham disagreed with #2. From p.570 of the revised edition (edited by Zweig) of The Intelligent Investor:<br /><br /><i>"In forty-four years of Wall Street experience and study I have never seen dependable calculations made about common-stock values, or related investment policies, that went beyond simple arithmetic or the most elementary algebra"</i>.<br /><br />I disagree DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-57994042181036388332009-10-19T15:58:57.947-04:002009-10-19T15:58:57.947-04:00I really do satisfy all Berstein's criteria (a...I really do satisfy all Berstein's criteria (and have done well) so I know he did "pull those numbers out of his ass".<br /><br />But, it's all irrelevant, because though I have the GMAT, I don't have the resume to get into a good B-school, and therefore it will take decades to get rich.<br /><br />My "strategy" is simple: Buffet + hedge shorts + leverage. That is,Ian Smithhttps://www.blogger.com/profile/06837467954881003505noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-53832093481788273482009-10-19T14:10:14.420-04:002009-10-19T14:10:14.420-04:00Strangely enough, if you only looked at my eTrade ...Strangely enough, if you only looked at my eTrade account, I did crazy-good. That was the account that received my dot-com options.<br /><br />Who knows though, since I sold down the back side of the dot-com boom, maybe I made $$$ while having negative alpha.<br /><br />I've more or less held my own since then (telling you very little), depending on which inflation metric I choose.<br /><br Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5880610.post-47213002069728186232009-10-19T13:45:45.003-04:002009-10-19T13:45:45.003-04:00I think there are many academic studies (I seem to...I think there are many academic studies (I seem to recall one using ETrade data) showing that small investors do very poorly (have negative alpha).<br /><br />This is certainly reinforced by situations where I actually know the trades conducted by people close to me (my wife, mother, in-laws, etc.).<br /><br />It's true, the average person could follow Bogle's advice and do well, but *howSteve Hsuhttps://www.blogger.com/profile/02428333897272913660noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-14623088597927572242009-10-19T13:36:48.189-04:002009-10-19T13:36:48.189-04:00It's hard to tell who is a "good investor...It's hard to tell who is a "good investor" because for most of us "investing" is really "total net worth management."<br /><br />I'm not going to tell you mine, and I don't expect you to tell me yours. You might tell me a trade or two, and I might tell you how I've faired in this or that "mental account."<br /><br />Neither would I expect Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5880610.post-21844660154170589932009-10-19T08:52:23.565-04:002009-10-19T08:52:23.565-04:00ummm, he made those numbers up. like, he totally ...ummm, he made those numbers up. like, he totally just pulled the whole 1/1000 thing out of his ass. and i am supposed to take someone seriously who wont even do the footwork to find statistics that defend his line of thought? please.Unknownhttps://www.blogger.com/profile/15309663975078009318noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-53436073141195136912009-10-19T08:48:20.084-04:002009-10-19T08:48:20.084-04:00For the average person who knows that he doesn'...For the average person who knows that he doesn't know, can't he just follow John Bogle's advice and expect to do alright?rpshttps://www.blogger.com/profile/18373896207744838530noreply@blogger.com