In Long Run, There’s No Such Thing as an Einstein Investor

Link: In Long Run, There’s No Such Thing as an Einstein Investor

Quote1: “On the other hand, many investors embrace the catchy methods that bubble up from time to time, like “smart beta,” a phrase for a form of systematic investing that claims to outperform the market. There is no universal agreement on what smart beta means, but it typically refers to published theories and replicable statistical analysis, and mechanical procedures aimed at beating them. Smart beta clearly is the epitome of community property, not quirky genius.”

Quote2: “So what’s an investor to do? Both published statistical analyses and published actions and opinions of knowledgeable people, whether geniuses or just smart and well-informed investors, are worth mulling over, if you have a taste for such things. But don’t follow these strategies blindly. We need to exercise our intuitive judgment as well as rely on the wisdom of smart, well-informed people to decide whether to continue to rely on statistical indicators and investment strategies that seemed to work in the past.”