Luck and Skill in Investing

You look at a Fund and see that it is outperforming its index.  Is this luck or skill?  Here is an excellent interview, found on the The Reformed Broker site by Barry Ritholz, of Michael Mauboussin:

"Masters of Business Interview"

that will help you answer this question.  Both participants are serious thinkers about the investment process and are well-versed in behavioral finance.

Michael Moubousin is head of Global Financial Strategies at Credit Suisse.  Barry Ritholz is CIO of Ritholz Wealth Management and a widely-published author.

The wide-ranging interview discusses luck and skill in investing, the roles of process versus outcome, seeking an edge, understanding the role of time, the paradox of skill, how to manage your luck, and other topics with a number of interesting examples bearing on the process of investing.

Taking the time to listen to this interview will make you a smarter investor.