November 19, 2018

Is there a special sauce to beat the market ?

Navigating the stock markets is not easy even though many claim to have a special secret sauce that enables retail investors to bag profits. Doug Kass tells the truth of how Retail Investors can get duped.

"The “special sauce” guys who have a special formula to beat Mr. Market. The most venomous are the “unusual call activity” crowd – a constant diet of which will end most up in the poor house. Most have little skin in the game. But, importantly, their consistent failure to memorialize the results of their recommendations is testimony to the mug’s game they use as a “hook” to snare the unsuspecting. I have contempt and little respect for those that show the “rolls” of their winners and too often ignore their trades that go to zero (e.g. out of the money calls bought on (ROKU, SQ, AAPL, TSLA, NFLX, GS) and many other high beta stocks of that ilk that have recently collapsed).

(There is no special sauce. I give these players – with limited accountability and selective disclosure – no respect at all – for basically trying to deceive the individual investor.)"

- via realinvestmentadvice