However, the researchers also found that investors who did track early red flags — such as high manager turnover — had higher
returns than other investors on their investment portfolios.
Mutual funds are typically purchased from fund companies
rather than other investors, and are priced once a day after the market has closed.
True, you could prove better at interpreting this information by, say, predicting correctly that a company's new product will be more
successful than other investors imagine.
In the case of default, mezzanine funds may be more
likely than other investors to liquidate what's left, rather than attempt to restructure and rebuild.
The traditional explanations for believing in an investing tooth fairy who will leave money under your pillow are optimism and overconfidence: Hope springs eternal, and each of us thinks we're better
than the other investors out there.
The hubris was in thinking that I could decipher what balance sheet information there was better
than other investors WITH THE SAME INFORMATION!
Ignoring my own situation, which is far better
off than some other investors (note this blog doesn't track all of my assets), no one is compelled to pick any particular company in any particular amount.
In this article I am going to discuss why your investment process should be focused simply on understanding and valuing businesses, and being better at
it than other investors.
If you want the really good deals, then you either have to do more work (direct marketing, etc)
than the other investors or you have to take more risk (buying at foreclosure or other auctions).
WHY would someone send you a great deal, WHY would they invest in you, and WHY will you succeed more
than other investors?