Comments on: before “SuperCrunchers” .. The Little Blue Book That Beats The Market ..? http://dsanalytics.com/dsblog/before-supercrunchers-the-little-blue-book-that-beats-the-market_136 Data Analytics- the art and science of analyzing data Sun, 06 Jul 2008 04:25:24 +0000 http://wordpress.org/?v=2.0.1 by: John Aitchison http://dsanalytics.com/dsblog/before-supercrunchers-the-little-blue-book-that-beats-the-market_136#comment-1749 Tue, 22 Apr 2008 09:54:21 +0000 http://dsanalytics.com/dsblog/before-supercrunchers-the-little-blue-book-that-beats-the-market_136#comment-1749 Chris, you have a portfolio of 25 stocks but you don't think that portfolio construction is a sensible thing to do? So, why not have 1 or zero stocks ? Chris, you have a portfolio of 25 stocks but you don’t think that portfolio construction is a sensible thing to do?

So, why not have 1 or zero stocks ?

]]> by: Chris Lloyd http://dsanalytics.com/dsblog/before-supercrunchers-the-little-blue-book-that-beats-the-market_136#comment-1631 Fri, 18 Apr 2008 03:58:53 +0000 http://dsanalytics.com/dsblog/before-supercrunchers-the-little-blue-book-that-beats-the-market_136#comment-1631 "However, it does seem plausible that portfolio construction and adjustment is sensible and that anything along those lines (even the magic formula) is better than nothing. " It does not seem plausible to me. It sounds like the makings of a perpetual motion machine. I don't believe there are any gold coins waiting to be picked up off the pavement. The market is pretty efficient. To escape to inefficient domains, where you could make a profit ,you need to be looking at (a) illiquid small cap stocks, or (b) time periods of seconds or (c) periods of extreme uncertainty (like now). Anyway, I am the proud owners of a bunch of about 25 stocks, 24 of which are in the red. But I am holding on to them. I'll probably bequeth them to my kids. My advice is worth what you paid for it. “However, it does seem plausible that portfolio construction and adjustment is sensible and that anything along those lines (even the magic formula) is better than nothing. ” It does not seem plausible to me. It sounds like the makings of a perpetual motion machine.

I don’t believe there are any gold coins waiting to be picked up off the pavement. The market is pretty efficient. To escape to inefficient domains, where you could make a profit ,you need to be looking at (a) illiquid small cap stocks, or (b) time periods of seconds or (c) periods of extreme uncertainty (like now).

Anyway, I am the proud owners of a bunch of about 25 stocks, 24 of which are in the red. But I am holding on to them. I’ll probably bequeth them to my kids.

My advice is worth what you paid for it.

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