Are you kidding me?
You can fail 70% of the time and still become the greatest in history.
Don’t look so puzzled.
I’m referring to baseball’s Hall of Fame member Ted Williams, who most experts agree is the greatest hitter in baseball history.
If you know baseball, then you no-doubt know where I’m going. If you’re not a baseball fan, here’s what you need to know to get my analogy: If a batter gets a hit every single time he goes to bat, he has a 100% success rate, and baseball fans say he is “batting 1,000.” If he gets a hit exactly half of the times he goes to bat, he has a 50% success rate, so he’s batting .500. The higher the batting average, the better the hitter. You get the idea.
Now, what do you suppose is the batting average of the greatest hitter in baseball history?
You might guess … well, no one can be perfect, but the best hitter EVER must be pretty close, so he must have succeeded more than he failed, so I’m going to say his average was at least .700 (a 70% success rate).
Nope, nope, and NOPE!
The answer is … .344.
… which means, Ted Williams — the undisputed “best hitter in baseball history” — actually FAILED far more frequently than he succeeded. In fact, he failed to get a hit 66% of the time, whereas he succeeds only 34% of the time.
Yet, NO ONE has been able to top his stats over the course of a career. Even his percentage for getting on base, .482, reveals more failure than success. Yet it remains the highest on-base percentage EVER.
The point is, you don’t have to win all the time to be successful as an investor. You don’t even have to win more often than you lose; you just have to win more than others win, and make your winners bigger than your losers.
Which — when you compare yourself to the shockingly high failure rates among investment professionals that Livio Nespoli, InterAnalyst – seems kind of easy. But when you consider how our brains are wired to learn from failure, it can in fact be a real challenge.
Livio is publishing the August 2016 issue of InsidersPower and it is promises to be one of the heaviest-hitting issues he has ever published. In the longer-than-usual issue, Livio uses eye-opening charts and figures, each with commentary, to show the “batting averages” of virtually every field of investors: from advisors, corporate investors, economists and futures traders to hedge fund managers, individuals, mutual fund managers and regulators — ALL follow the herd, and therefore ALL fail an astonishingly high amount of the time.
There are two exceptions to the rule, however, and Livio details them — and reveals how you, too, can put yourself in these rarest of breeds — inside his next InsidersPower.
So if you “get it” when I say that being a successful investor is a lot less about what you’re investing in versus how you go about investing, then I’m here to tell you it’s time to step up to the plate and start reading Livio’s InsidersPower newsletter every month as part of any InterAnalyst subscription.
No matter what you invest in you’ll get arrows and research in our InsidersPower newsletter, that over the long term let you stay way ahead of the pack. In fact, you will likely end up in the top 3 – 5% of investors worldwide . . . without becoming a day trader.
Our Wealth Preserver subscription is widely known in the industry as the best, most boring way to wealth you could ever imagine.
InterAnalyst has been serving investors globally since 1990. Authoring hundreds financial articles and publications, thousands of trading charts to investors worldwide.