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Is it possible to outperform the market?

It is possible for individual investors or investment managers to outperform the market, but it is not easy. In order to outperform the market, an investor or investment manager must be able to identify opportunities that are not reflected in the current market price of an asset, and then capitalise on those opportunities.

However, the vast majority of investors and investment managers are not able to consistently outperform the market. In fact, many experts argue that it is virtually impossible to consistently outperform the market over the long term, due to the efficiency of modern financial markets.

One of the main reasons why it is difficult to outperform the market is that stock prices are influenced by a wide range of factors, including economic conditions, company performance, and investor psychology. These factors are difficult to predict with any degree of accuracy, and even professional investors can make mistakes or misjudge market conditions.

Another reason why it is difficult to outperform the market is that there is a lot of competition among investors and investment managers. In a competitive market, it can be difficult to find undervalued assets or to capitalise on market opportunities before other investors do.

Overall, while it is possible to outperform the market, it is not easy and it is not something that can be done consistently over the long term. Most investors are better off adopting a diversified investment strategy and taking a long-term perspective.

“Most people are too fretful, they worry too much. Success means being very patient, but aggressive when it’s time.” – Charlie Munger

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