Transcript
0:00 i've been thinking a lot about this i think that i have disproportionately benefited from being at the right place at the right time backed by enormous amounts of central bank money and so i think we all have been i think it is very difficult to be a public market individual stock picker in a world where the central banks are constantly meddling because when they do
0:31 the best thing that you can do is belong the market beta and the more concentrated you are the better returns you would have delivered since 2008 when the central bank started to get very aggressively involved when individual stock pickers reigned the the universe was when central banks were largely on the sidelines and so there was all kinds of dispersion right dispersion meaning good outcomes bad outcomes lots of alpha right meaning
1:04 your performance was independent of the market but since 2008 it's largely been beta that's driven the market and the folks that have done exceedingly well were those in tech because we delivered the best beta and every time we confuse alpha and beta we get over our ski tips and there's always some big out you know blow up so i think my my general takeaway is that if the central banks stay on the
1:34 sidelines individual stock picking rains and active management can win if they continue to be involved and do quantitative easing and all of this other stuff index funds that are long concentrated market beta will always outperform in the long