From: Tony Berkman (tberkman@rcn.com)
Date: Wed Oct 18 2000 - 08:56:54 PDT
*SNIP*
>Laughable? Is this everyone from Robert Mundell to Milton Friedman believes
>in supply-side fiscalism? Or did you get a Nobel Prize as well?
*SNIP*
Mentioned with such disdain and dogmatism. Let's see William F. Sharpe won
the Nobel Prize for CAP-M and has since admitted its flaws and to being
happy no one could take away his prize. And his partner in crime, Harry
Markowitz, has regularly seen his own investment fund exhibit higher risk
than its benchmark. Of course Robert Merton and Myron Scholes won their
Nobel Prizes for their work in risk management, so they must know a thing
or two about risk, right? Well Long Term Capital Mgmt. was only down just
over 90% - at least they didn't lose all their client's money. While
Eugene Fama hasn't yet won a Nobel Prize, but his name often gets
mentioned, and he stacked his funds with Nobel Laureates. Here is what he
has to say about stock picking: "I'd compare stock pickers to astrologers,"
says Fama. "But I don't want to bad-mouth the astrologers." What a load of
crap considering many of his funds do (guess what?)... Pick Stocks!!! And
on a side note, having worked for 12 years with whom I consider the best
stock picker in institutional money management - Joe DiMenna of
Zweig-DiMenna hedge funds, I have seen first hand that stock picking can
work. So while I don't have a Nobel Prize, and surely never will, I can
certainly see that all those Nobel Laureates saying no one can make money
picking stocks because the market is completely efficient are dead-wrong,
and it burns me up when they then decide to manage money themselves - wink
wink. Anyway, I'm beginning to ramble.... What was my point? Oh yes,
please don't play the "They won Nobel Prizes therefore they are right and
you are stupid" card. It just points to your arrogance.
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