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There's A Way You Can Beat The Best Investors. You've Just Got To Know When To Sell


The economists first big finding is that these financiers are real whizzes when it comes to
buying stocks. They ve got skills that could justify charging clients high fees. The average stock they chose to buy outperformed the random dart-throwing monkey by 1.2 percentage points. That might not seem like a lot, but with the power of compound interest, it really adds up over time. It makes these investors rock stars in the world of finance. They re earning those Bugattis.
But then the economists looked at these investors performance when
selling stocks. It turns out they re bad, much worse than the monkey. The stocks the investors sold ended up going up in value faster than the stocks they decided to keep. If their clients had instead hired the monkey with darts to randomly choose which stocks to sell, the clients portfolios would have earned 0.8 percentage points more per year. Again, that is a huge amount in the world of finance. Goodbye Bugatti, hello Ford Focus. ....

Lawrence Schmidt , Alex Imas , Jeff Bezos , Klakow Akepanidtaworn , Daniel Kahneman , Amos Tversky , International Monetary Fund , University Of Chicago Booth School Business , Massachusetts Institute Of Technology , Massachusetts Institute , Chicago Booth School , International Monetary , Buying Slow , Nobel Prize Winning , லாரன்ஸ் ஶ்மிட் , அலெக்ஸ் இமாஸ் , சர்வதேச பண நிதி , பல்கலைக்கழகம் ஆஃப் சிகாகோ சாவடி பள்ளி வணிக , மாசசூசெட்ஸ் நிறுவனம் ஆஃப் தொழில்நுட்பம் , மாசசூசெட்ஸ் நிறுவனம் , சிகாகோ சாவடி பள்ளி , சர்வதேச பண , வாங்குதல் மெதுவாக , நோபல் ப்ரைஸ் வென்றது ,