A great article by Michael Mauboussin, Chief Investment Strategist at Legg Mason Capital Management, on separating skills and luck in the finance field and how to think about outcomes. Among the things he talks about is the key features of skill in the investment business. The paper is roughly 27 pages long but talks about interesting things such as mutual fund streaks (I wonder if he thinks Bill Miller's streak was skill or luck) and reversion to the mean in the mutual fund industry.
Untangling Skill and Luck - Michael Mauboussin
Untangling Skill and Luck - Michael Mauboussin
