O'Shaughnessy: Alpha in financial markets depends strictly on relative skill
Patrick O'Shaughnessy · The Bet with Buffett (Capital Allocators, EP.05) · May 2, 2017 · at 56:37
Patrick O'Shaughnessy discusses Michael Mauboussin's paradox of skill and the challenges of generating market-beating returns in mature financial industries.
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“Really all that matters in markets is relative skill. That if you've got, you know, 10 PhDs in a room, maybe 3040 years ago, that meant you were going to earn enormous alpha. But now everyone has those 10 PhDs, and they're fighting against each other. It's a relative game.”
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