Charles Ellis, a longtime observer of stock markets and author of the brilliant investing book Winning the Loser’s Game, observes that, in the game of amateur tennis, most points are won not by adroit plays on your part but rather by mistakes on the part of your opponent. So it is in investing. Ellis argues that most investors beat themselves by engaging in mistaken stock-market strategies rather than accepting the passive buy-and-hold indexing approach recommended in this book.
