Against the Gods!
That title should get some attention to this piece!
That is the name of the book i just finished reading - a wonderful masterpiece on understanding risk , rational decision making and how, more often than not, emotion drives human actions.
Read this book and use it as a basis for your investing philosophy - you will come out ahead.
3 Comments:
GP, whats the sharpe/ information ration on your portfolio?
-bharat
GP, have u tried mean-reversion ... choose any two highly correlated scrips - same sector - say A and B .. Portfolio = Long A Short B (same value for each position) ... funda: A/B reverts to the statistical mean .... Buy portfolio at Mean - 2 sigma
bharat
I have posted a new entry - On Mean Reversion - check it out.
I haven't done any detailed number crunching on my portfolio - I plan to do it someday.
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