No. of Recommendations: 13
Here, I think...
SSRN: Research paper
This is a study which has caused a whole lot of ink to be spread on paper.
I find it interesting as it is spectacularly misleading, yet as far as I know it is mathematically correct.
For anyone interested in the views of this old geezer on how those two are reconciled and why the study should be ignored...
http://www.datahelper.com/mi/search.phtml?nofool=y......which links to...
The Motley Fool: QQQE - #32 by mungofitch - Stocks A to ZIndulging in the vain sin of quoting myself:
"...that study ... held all positions for their entire lifetime'all the way through the fade and death step...
Yet we know that on any given day, most firms are not in that category at the moment.
A random selection of firms in a random finite time interval will have a strongly positive expected return,
because most picks, being chosen at random points in their lifetimes, will not be in their fade-and-die stage.
There is no need at all to be an owner of one of the few long term big winners."Jim
