The Monkey On Wall Street

[strangecosmos]

 

[oneday]

It’s nice to provide some kind of summary when you post a video. Anyways, I’ll try to sum up the 8 minutes for other readers.

1. 50% of all people are below average intelligence
2. Most people think they’re smart
3. Stock market is like gambling
4. Best to just play index funds because stock market has historically just gone up in value on average over time

 

[strangecosmos]

That’s not really an accurate summary. It doesn’t mention (1) or (2) at all. The video is about how alpha is elusive because a) the stock market is highly random and unpredictable and b) even more importantly, anytime anyone finds a way to non-randomly attain alpha, people just copy them and arbitrage all the alpha away.