Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard.
Investors should be skeptical of history-based models. Constructed by a nerdy-sounding priesthood using esoteric terms such as beta, gamma, sigma and the like, these models tend to look impressive. Too often, though, investors forget to examine the assumptions behind the models. Beware of geeks bearing formulas.
Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.