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Thursday, November 05, 2009

Random Thoughts

Everybody wants to think that they can get rich out of their investing experience. That leads them to do silly things. People tend to overreact to recent data because they don't understand the randomness of returns and they don't appreciate the risks of being undiversified. All the marketing and all the press goes the other way.

-Dr. Eugene Fama
http://faculty.chicagobooth.edu/eugene.fama

So true!

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