But the real question is whether there were any clustering in the
attributes of the minority who consistently beat the market. If there is a
strong clustering of attributes (they ate the same brand of corn flakes for
many many years or went to the same school or followed the principles of
the
This possibility was made all too clear to me when I took a $20,000
short position in Amazon.com - - a year too early.
William T. Dickens
But those who bought long-term put options (LEAPs) on Amazon could lose no
more than than their financial investment, and the put options could be
William Dickens wrote:
However, as I recall, the increase in expected returns that one gets by following
such a strategy are measured in basis points, not percentage points as some advocates
of this approach would suggest.
So Bill, are you willing to stick your neck out regarding the January
William Dickens wrote:
This possibility was made all too clear to me when I took a $20,000 short
position in Amazon.com - - a year too early.
Why didn't you take a series of smaller short positions instead? You
could have held a $1000 short position for twenty times as long, no?
--
But those who bought long-term put options (LEAPs) on Amazon could lose no
more than than their financial investment, and the put options could be held
or others bought until the downturn, with no margin calls.
The Longest term option that was availale wouldn't have gotten me far enough to have
So Bill, are you willing to stick your neck out regarding the January
effect? Thaler says average ROR in January is 3.5%, versus an average
of .5% for all other months. Is this another case of basis points being
exagerated into percentage points?
So if you invest in stocks in January and
