Comment on Software Engineer up 400%
commented on
23 Jul 2013, 06:39 AM
well Nitin said, he has tried to remove flukes. I am afraid 400% return on equity is a FLUKE in capital letters. Even if you divide your returns by 2. With a starting capital of 10 lakhs, you would end up making 72 crores in an year and soon will break rajesh jhunjhunwala and not long from now Warren Buffet.
This is called Recency bias and can hurt us really bad.
Read fooled by randomness by Nasem Taleb to know wat i m talking about.