Grand Illusion #3: The Persistence of Performance

“If past history is all there was to the (investment) game, the richest people in the world would be librarians.” -Warren Buffett

Grand Illusion #2: Superior Investment Selection

Grand Illusion #1: Market Timing

The first “grand illusion” of investments is market timing. Market timing presupposes that those who are smart enough, or follow the markets closely enough, can figure out both when to get into the stock market and when to get out. The goal is to miss the pain and experience the gain.

Investment Fiction: Welcome to the Grand Illusions