The Five Investor Camps That Try to Beat the Stock Market

12 Pages Posted: 29 Oct 2019

See all articles by William T. Ziemba

William T. Ziemba

University of British Columbia (UBC) - Sauder School of Business; Systemic Risk Centre - LSE

Date Written: October 19, 2019

Abstract

This paper categorizes investors into five groups. They are: efficient markets, risk premium, genius superior traders, rejectors of efficient market theory and those who use research to make superior risk adjusted returns. Successful investment involves estimation and optimization and these are discussed.

Keywords: efficient and inefficient markets, risk premium, Samuelson’s superior investors, Buffet’s investment approach, superior investors approaches and techniques, effect of parameter errors on optimal investment choice, Kelly, fractional Kelly optimization

JEL Classification: C02, G11, G12

Suggested Citation

Ziemba, William T., The Five Investor Camps That Try to Beat the Stock Market (October 19, 2019). Available at SSRN: https://ssrn.com/abstract=3472456

William T. Ziemba (Contact Author)

University of British Columbia (UBC) - Sauder School of Business ( email )

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Vancouver, BC V6T 1Z2
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HOME PAGE: http://williamtziemba.com

Systemic Risk Centre - LSE ( email )

Houghton St, London WC2A 2AE, United Kingdom

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