And the winners are…
SUMMARY
INTRODUCTION
Every day, fortunes are won and lost on the stock market. However, investing in stocks is not a zero-sum game as wealth is created from the profits earned and distributed by public companies. In contrast, searching for alpha is a zero-sum game as for every investor that outperforms the stock market, there is one that underperforms it.
The search for alpha can be considered a fool’s journey as there is plenty of research that shows that few active managers create alpha, and even fewer achieve it consistently. Yet, still most investors believe in alpha and continue the pursuit of it.