- I don't view the investment industry as overly competitive, based on the simplest interpretation of Game Theory.
- To get an advantage, though, we can learn from some legendary investors; most notably Paul Tudor Jones, Peter Lynch, and Charlie Munger.
- Additionally, we always have Newton's first law of Motion applied to markets to rely on.
I’ve recently read discussions on how competitive the profession of trading continues to be. My Blink reaction is that it shouldn’t be viewed as “competitive”, having talked before about how the only game (based on Game Theory) trading fits into is the classic One-Person Game. Given that, it can be viewed as Man vs. Nature, with the market in general playing the role of nature. As Morton D. Davis wrote in his book, “Game Theory: A Nontechnical Introduction”, “Nature differs from man, of course, in that you cannot anticipate its actions by guessing its intentions, since it is completely disinterested.” But then I gave it a second thought. The original discussion was about trading, and I’m looking more at the investment side (see my recent piece on Cotton). For this conversation, then, I want to focus on the relatively noncompetitive angle of market investment.
