How to Win the Loser’s Game

2015, Business, Economics, Money  -  82 min Leave a Comment
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Investing has been described for many years as ‘The Loser’s Game’. In a sense it is, but this documentary featuring Robin Powell promises to show you how to win at this game.

The city of London is the center of global finances. The pressures imposed on fund managers are huge. Equally astronomical are the salaries and bonuses offered, which have risen noticeably in the last few years. For instance, one particular fund manager made up to 600 times the normal wage in 2013. The idea within the industry is that such large financial rewards need to be offered in order to attract the brightest talent. However research has shown that in many cases fund managers and the value they add have been overestimated. This means that only a small fraction of fund managers have been able to outperform the market with any meaningful degree of consistency. Research has also found that luck has nothing to do with their results, as some might suggest. The real problem is that they are simply unskilled. And although a few star performers do exist, they are incredibly hard to identify. Based on these findings, it seems like it’s not worth paying the vast majority of fund managers to actively manage assets.

Although it sounds counterintuitive, when it comes to investments the less you pay the more you get back. This film takes a look at just how much investing costs us. It explores more than a hundred years of academic research into asset pricing and how markets really operate. The film also investigates some long-term investment strategies that have been proven to work.