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Luck vs. Skill

Comments posted to “The Role of Luck and Skill in Investing,” an interview with Michael Mauboussin, in the September 2013 AAII Journal.

I’ve struggled with how much of the returns in my system are “luck” and how much are “skill.” Only the most egocentric would assign a lot of skill, and those folks are riding for a fall.

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Vaidy Bala from posted 6 months ago:

Sill vs luck
From history I learn both from Bill Gates and Warren Buffett that luck and appropriate time were in place, not much skill. L.Pasteur stated luck favours a prepared mind. Although we place excessive stress on skill development, it is only marginally leads to profit as investing. Luck may be explained as a mysterious force either good or bad strikes us completely urn fathomable. We can even say some divine force not accountable to skills department. So, we are left with the doubt how do we develop luck, is it possible at all. Skills, we do and we can. Einstein also seems to have a prepared mind favoured by luck, as no one figured out he had skills.
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