I spent 10 minutes with the Harvard alumnus who was doing the interview, and he assessed my capabilities and turned me down.
If calculus were required, I’d have to go back to delivering papers.
There’s a great desire of the priesthood in finance to want to teach the things that they know and you don’t know and that they spent a long time learning and that maybe requires a fair amount of mathematics. And it really has nothing to do with investment success.
Most advisors are far better at generating high fees than they are at generating high returns.
Most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth.”… In our opinion, the two approaches are joined at the hip : growth is always a component in the calculation of value.
A number of smart people are involved in running hedge funds. But to a great extent their efforts are self-neutralizing, and their IQ will not overcome the costs they impose on investors. Investors, on average and over time, will do better with a low-cost index fund than with a group of funds.
A prediction about the direction of the stock market tells you nothing about where stocks are headed, but a whole lot about the person doing the predicting.
The stock market is a non-called strike game. You don’t have to swing at everything – you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, “Swing you bum!”
The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.
If past history was all that is needed to play the game of money, the richest people would be librarians.