When the market have been running for a good five years, it is difficult to find out if your process is actually doing well. Good processes are usually tested well in the face when risk is introduced.

On Outcome bias, your winners and losers and processes snoopy

There are times when as a blogger you are privileged to meet folks that does all this as a profession and not long ago I met up with a value hedge fund analyst who shares with me an experience of his.

Back when he was rounding up his studies at Colombia’s value investing program taught by Todd Combs and Mark Cooper (You may know Todd Combs, he is the one brought in by Buffett to run part of Berkshire’s investment portfolio), the market was at a low in 2009.

So he decided to take that opportunity to start putting what he learnt in the market. And went around picking stocks with the lowest …