So here is the unfortunate conclusion. Even if an investor is endowed with the divine power of being right 80 percent of the time, the probability that he will select a good investment is only 57 percent. Even though he is “right” 80 percent of the time, 43 percent of his investments will turn out to be bad! The reason is simple, especially when we incorporate our prior knowledge of the business world: There are very few good investments in the market. Let me repeat this statement, which is the bedrock of our philosophy and that of the rest of this book: There are very few good investments in
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