STREET DOGS: Not so easy
Success in the markets is anything but easy
At every turn, investors are encouraged to believe not just that they can beat the professionals, but that they can do so with little effort. As Peter Lynch put it, "Any normal person using the customary 3% of their brain can pick stocks just as well, if not better, than the average Wall Street expert." It’s unlikely that Lynch was as dismissive of his own intelligence and hard work as this statement seems to imply. The point he was making, though, is that the individual investor acquires an edge by not being encumbered with the conflicts typical of a large investment organisation. On this he is undoubtedly correct. But freedom from those burdens does not translate into investment success – any more than removing a backpack full of bricks would enable the average jogger to run a four-minute mile. Nothing is more dangerous to an investor than believing that one critical element of success suffices for all of them. If any normal person could achieve outstanding investment returns usin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.