121: Michael Mauboussin – Tactics for Better Decision Making, and Skill Versus Luck
Chat With Traders
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How to Qualify Skill and Luck
When thinking about skill versus luck, how are you able to differentiate the two? I presume this is probably another tricky question, but is there a way to you know, quantify? Yeah. So we go through in the book, we have a chapter dedicated to specifically this issue. We can estimate what the win losses would look like if the game were totally random,. It was a binomial distribution. And from that, we can determine or estimate how much is skill and how much is luck.
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