[code4tee]

Interesting read. It does highlight though that this style of investing is very much dependent on hitting home runs and grand slams—-whereas you’re typical SPY investment is a series of steady base hits. All is well until you miss a few pitches, then the potential big upside flips to a big potential downside whereas base hit guy keeps truckin’ along.

Just like with hedge funds you tend to hear about the ones that did well, and not so much about the ones that lost their shirt. Also like hedge funds while there are a few recognized skilled investors for many others there’s not a whole lot of solid evidence that the “winner” investors were really smarter than the rest, just probably luckier. (Just under 50% of people betting black in roulette will double their money... that doesn’t make them good investors). Like hedge funds there are lots of, often untold, stories of people getting super lucky with returns, thinking they are “skilled” and then going out and losing a ton the next few times around.