Investing

[LinusKS]

Nice article.

I take issue, though, with this: "Likewise, most investors have access to all the same information."

From the WSJ:

[ QUOTE ]
A study suggests that U.S. senators possess stock-picking skills that even the most seasoned money manager would envy. During the boom years of the 1990s, senators' stock picks beat the market by 12 percentage points a year on average, according to the study. Corporate insiders, meanwhile, beat the market by about six percentage points a year, while U.S. households underperformed the market by 1.4 percentage points a year on average, according to separate studies.

[/ QUOTE ]

Investing, like poker, requires you to make risk/reward calculations. However, unlike poker (a fair game, anyway), you can't count on having the same information as everyone else. In fact, you can pretty well count on having less information.