Mean Reversion
topic on 1 show · 4 statements across 4 episodes
4 statements about Mean Reversion, every show
Switching between mean-reversion and momentum guarantees allocators will mistime decisions
“The reality is you need to be consistent. You need to say, are we the type of team that's going to generally favor mean reversion? Or are we going to try to be a momentum shop? But when you start to go between the two, you set yourself up to always miss the bu…”
Exceptional businesses defy mean reversion longer than markets price in
“Most businesses are not special. They may be able to grow at an above average rate for a year or two. But the power of mean reversion is very, very strong. However, what we believe is that there's a very small group of special businesses that can defy the laws…”
Samani: Fundamental long-term crypto investors should reject mean reversion on principle
“I reject kind of the notion of mean reversion as a point of principle, given our mandate to be long-term fundamental investors.”
Fisher: Mean reversion trading is emotionally harder than trend following
“Mean reversion in trading is very, very hard. It also is hard because when you're doing trend trading or you're doing breakout trading, it's clear where the break is. If it goes back below the break, just stop out and you're done. It's emotionally pretty easy.…”