A Great Example of Smart People Doing Stupid Things

After previously investing in SEARS Corporation, a well educated young hedge fund manager bet everything on a falling real estate company. He worked very hard on these investments, presenting long impressive slide-reports to his investors, only for the investment to crash from $35 all the way down to $1.17.

Lesson? Unless you’re an insider, you will never be capable of knowing with certainty what is going to happen in the future, and it doesn’t matter how smart you are. Just like a math equation, if you are missing too many variables, it is impossible to find the correct answer to the problem. Read more at Forbes

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