CDZ Behavioral Finance

william the wie

Gold Member
Nov 18, 2009
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Lately I have been reading up again on Graham and his students. I have come to the following conclusions about why it should be much easier to beat the indexes 4 to 1 now than when Graham-Newman did so 1926-56.

The data that is available to do so is much easier to obtain now vs. then.

The means of investing and hedging have expanded with direct purchase plans and covered standardized options. These new means also provide additional income through discounts on DRIP/DIP v. market prices and the majority of options expire worthless.

The number of issues available for investment have expanded as well.

So, how come the percentage of millionaires and billionaires is not expanding more rapidly?
 

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