At my workplace, I called this "parts is parts" after the old Wendy's commercial.John wrote:and each programmer is just a cog in a wheel.
https://www.youtube.com/watch?v=y_oem9BqUTI
At my workplace, I called this "parts is parts" after the old Wendy's commercial.John wrote:and each programmer is just a cog in a wheel.
Beating the Market Has Become Nearly Impossible
Duncan is excited about my research on alpha. She cites a joint paper from the Center for Applied Research and the Fletcher School of Law and Diplomacy at Tufts University that found that less than 1 percent of 2,076 U.S. mutual funds tracked between 1976 and 2006 achieved superior returns after costs.
Unlike in other fields, such as medicine, where scientific advances have measurably improved lives, investors are not better off in this hypercompetitive world. In today’s investment industry alpha — a measure of a manager’s skill that arguably was always hard to find — is now rare. It’s the result of a phenomenon not exclusive to investments.
As the skill of all the players in a game rises, luck increasingly influences who wins and who loses.
In baseball, players are now uniformly better than they were a generation or two ago; that’s what happens when you start coaching kids in kindergarten. Whether ball meets bat can often depend on extraneous factors like wind speed. But baseball, in the end, is a game. The stakes are higher in investing, whether the savings are for retirement or for a college endowment.
https://www.institutionalinvestor.com/a ... lydlRCjQflSo I go back to Ellis. He too has been advocating that investment managers return to the business of providing tailored advice. He says it’s the one service they can consistently deliver. Managers who promise steady outperformance can’t make good on the pledge. “But what about David Swensen,” I say, trying to speak softly as my voice booms in a cavernous room on the second floor of the Yale Club in Midtown Manhattan. “How can you so staunchly believe that investment managers can’t outperform, when you watched David do it for so many years?” (Even with the losses of 2008, Yale’s endowment returned 13.7 percent a year over the two decades ended June 30, 2012.)
Ellis is undeterred, making the case that Swensen’s skill is not unlike that of a Picasso or a Renoir. “He’s the most rigorous thinker about investments in the world,” says Ellis.
That's not enough. He hasn't invested through a severe bear market yet. Fortunately for a Picasso, he can toss his crappy paintings out and nobody ever sees them, but somebody who manages a Yale endowment has to gamble all the time.So I go back to Ellis. He too has been advocating that investment managers return to the business of providing tailored advice. He says it’s the one service they can consistently deliver. Managers who promise steady outperformance can’t make good on the pledge. “But what about David Swensen,” I say, trying to speak softly as my voice booms in a cavernous room on the second floor of the Yale Club in Midtown Manhattan. “How can you so staunchly believe that investment managers can’t outperform, when you watched David do it for so many years?” (Even with the losses of 2008, Yale’s endowment returned 13.7 percent a year over the two decades ended June 30, 2012.)
Ellis is undeterred, making the case that Swensen’s skill is not unlike that of a Picasso or a Renoir. “He’s the most rigorous thinker about investments in the world,” says Ellis.
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