Re: Weaving the Strands: Business, Economics, and Tax Policy 2.0
Fishy its called "surivorship bias" and yes you need to pay attention to it when comparing historical returns. Furthermore your index beating friend tapped into a trick known the world over for portfolio managers. Buy the S&P, dump Sears lets say and overweight Apple. Voila! I've beaten my benchmark! Give me all your money, baby!
Fishy its called "surivorship bias" and yes you need to pay attention to it when comparing historical returns. Furthermore your index beating friend tapped into a trick known the world over for portfolio managers. Buy the S&P, dump Sears lets say and overweight Apple. Voila! I've beaten my benchmark! Give me all your money, baby!
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