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@pluralistic@mamot.fr

Post #4060672

2026-07-24 10:27 UTC

This is a well-established investment principle. As Keynes wrote, the point of investing isn't necessarily to pick the most beautiful contestant to win the beauty contest - it's to pick the contestant that the *other judges* will hand the crown to: https://en.wikipedia.org/wiki/Keynesian_beauty_contest 15/

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  • @pluralistic@mamot.fr 2026-07-24 10:27

    In other words, you don't get rich from stock speculation by identifying the businesses whose profitability will grow the most - you get rich by identifying the businesses that *other investors* will pile into, pushing the price up. All you need to do is sell your shares *after* the price spike, but *before* anyone else figures out that the business is a turkey. It's like that old joke: "I don't need to run faster than the bear (market), I just have to run faster than *you*." 16/

    Open ##4060671