#31: Rob Arnott On Engineering A Better Index
Superinvestors and the Art of Worldly Wisdom
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The Differences Between the Cap Weighted Index and the Fundamental Index
A lot of these fang type companies are priced to reflect an expectation that they're going to be very big. But it's not going to help you make money unless the reality is even better than the market thinks. We wrote a series of papers back in 2011 and 2012 in which we looked at an idea known as that we describe as clairvoyant value. Do I have high confidence that value will beat growth over the next five to 10 years? Oh my goodness, yes. It's a coin toss. And really hate it when those coin tosses come up tails a few times in a row.
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