"100 portfolio managers buy and sell 100 million shares a day"
Luck should have been mentioned but the sheer volume of trades and absurd average over 18 years makes it seem like they DO have some special sauce... and a lot of it.
Luck should have been mentioned but the sheer volume of trades and absurd average over 18 years makes it seem like they DO have some special sauce... and a lot of it.
Those are the 9 or 10 events I'm talking about. These people are probably rarely betting on something more than 1:10 odds. But for those huge cases, they were probably getting 1:100 or 1:1000. Those are the ones it is so important to be on the right side of, and dampen quite a bit of suboptimal whatever in the meanwhile.
He quite specifically bet against the housing and dotcom boom as mentioned in the article, therefore shows to be betting most importantly on those 1:1000 events.
I was more trying to get the point across that they weren't rolling one die for 18 years but rolling it thousands of times.
All this talk about special sauce is making me hungry...