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  1. It is clear that on average, you cannot outperform the market – whatever market you are in. Why? Well, “everyone” IS the market.
  2. If you beat the market one time, you got lucky.
  3. If you beat the market a second time, you got lucky.
  4. If you beat the market a third time, you understand government. 

7 Responses to “Investing in the Market”

  1. Invest Tool says:

    the matter is if we are not able to beat the market, become rich is only a dream.

  2. wintercow20 says:

    The “market” has generated a “real” return in excess of seven percent per year over the last 80 years. Even if you only do half as well as the market, your living standards will double every 20 years. If you do just as well as the market, your living standards will double every 10 years!
    Compare this to the rate of economic growth prior to the Industrial Revolution (i.e. living standards barely improved for thousands of years) or even current rates of economic growth in industrialized nations (roughly 3% per year) and the wealth one can obtain by prudently investing is mind-boggling.
    The interesting question for the readers is, how can the “market” continue to provide real returns of 7% or better when the overall real economy does not grow that fast? Any takers?

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