If this sounds familiar, it’s because you’ve heard me preach these basic points for years. Didn’t know Mr. Lipper was a handicapper, but it would stand to reason…
Michael Lipper: Why fund selection is a lot like horse racing – Citywire.co.uk
As many of our blog community members and readers of my book, MONEYWISE already know, I credit the US Marine Corps and the racetrack as my two great educational experiences; as distinct from Columbia University, from which I graduated. What little I know about security analysis and mutual fund selection is based on what I learned at the race track.For those who have a detail orientation and are comfortable with basic arithmetic, the task of analyzing races is a great challenge and a pleasure. Just some of the items to take into consideration are the track records of the horses, their parents, the trainers and the jockeys. These factors are vital in terms of the winning results, but more importantly, the conditions under which the records were produced. The objective of all this study is to pick net winning bets, (winning more dollars than losing). Note by setting this goal I am accepting the reality that a number of the bets will be losers. I do not expect to win with every bet. I carry this expectation into my investing in funds and individual securities.