Great piece on the role of luck in money management.
Bottom line - it is virtually impossible for an individual investor to determine whether an investment manager's performance is due to luck or skill. Yet investors (small and large) continue to line up to pay handsome fees to managers who, as far as we know, just got lucky.
A Finance Professor's blog. I am a Professor of Finance in the Poole College of Management at NC State University. My website: https://sites.google.com/ncsu.edu/warr Opinions are my own.
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