Survivor-ship bias. Helluva way to make money.

mruts · on May 22, 2019

I mean surely you don’t think Goldman Sachs, Morgan Stanley, JP Morgon, etc are still around because of survivorship bias? That is, everyone is just flipping coins and some people got lucky.

If you think that’s true, the natural correlary is that all companies are just flipping coins.

nradov · on May 23, 2019

Those firms make most of their profit most years from fees, not trading for their own accounts.