Paradox Of Skill
topic on 2 shows · 3 statements across 2 episodes
3 statements about Paradox Of Skill, every show
Mauboussin: As Average Skill Increases, Luck Ultimately Dictates Outcomes
“The paradox of Gil says, and activities were both skill and luck contribute to outcomes, which is most stuff as skill increases, luck becomes more important.”
Mauboussin: The Distribution of Active Manager Alpha Has Consistently Narrowed
“One of the ways we can measure that is to look at the standard deviation of excess returns, right? So alpha, right? So excess returns. So, so you'd imagine and if you'd imagine If you're an active manager, what you want is a big fat bell shaped distribution, r…”
Mauboussin: As Overall Skill Improves In Any Field, Luck Drives Outcomes
“And the paradox of skills when both luck and skill are contributing to outcomes, which is most things, right? There are some things that are mostly skill like running races, but most things in life have at least a dollop of luck. It can be the case that a skil…”