An investor tells it how it is

From a post by Henry Wong on Quora:

Investment management is a zero sum game. The fund management industry in ‘aggregate’ does not really add value. When a trader wins, another trader must lose (or miss out). As a collective, the fund management industry is just the market (more or less). I’ve always found it amazing the number of young talent and amount of management fees that flow into a sector that in ‘aggregate’ simply cannot add value.  How unfortunate.


A million deaths is a statistic. There is an odd detachment on Wall Street when it comes to large sums of money. ‘A billion here, a billion there, pretty soon you are talking real money.’  Rogue trading bets gone bad, bank bailouts, massive quantitative easing, etc. feel like a statistic and just not realPeople can grasp the day-to-day reality of ‘thousand’ and ‘million’, but when it comes to ‘billion’ and ‘trillion’, what does that really mean? Just a statistic.  Personal detachment contributes to recklessness. (there might be a behavioral psychology research topic here… )