We all know well that market are efficient (most of the time) and many active management fund outperform because of “luck “ and not skill. You may find out more about this topic in my previous blog on
Success in Investing : Skill or Luck ? (here ).
As most of the investment professional think, it is hard to admit that luck plays as significant a role as skill in their investment success. That's not to say skill is unimportant but betting on continued success doesn't work well in investing as in other fields.
Michael J. Mauboussin author of "The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing." Mentioned in his book that “It's useful to take a step back to consider why betting on continued success doesn't work in investing.It certainly works in many other fields. For instance, you can count on the best chess players, sprinters or pianists to continue to perform at a high level for their next match, race or concert. In these activities, results correlate highly with skill ......