• The muscles of portfolio construction and valuation atrophy, as consensus-driven ‘access’ dominates behavior and idiosyncratic risk falls out of favour.


• The typical ‘power law’ distribution of outputs collapses as few genuine outliers can be realised from a concentrated pattern of investment.


• As returns converge on a mediocre market-rate, investors

... See more

We know that in markets and industries where there is a score, people do improve, and markets are efficient. For example, in sales, it's very clear what a good day is, it's very clear what a bad day is, and people are motivated to improve. You can measure who's great and who's not. If there's someone junior on the team who's really good, they're

... See more

Let me emphasise that the problem in investing is not a lack of skill -it is the exact opposite, there's too much skill. But the discussion also places the emphasis -properly -on the distribution of skill. And that has gotten narr ower virtually everywhere we look