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The lesson of the study, then, isn't just that to outperform you have to be able to pick good stocks; it's that you also have to be willing to hold on to the good stocks after they've risen.
If you're hiring well, you'll always find someone who can outperform you in at least one area.
Every time you sweat because you have to make eye contact with someone you don't intimately know, just know that five-year-old children outperform you at this.
If your fund did not outperform, you would have been better off in a low management fee index fund.
If you understand the low odds of picking an outperforming actively managed fund over the long term, as well as the lack of persistence among the funds that do outperform, you've made a giant leap toward transitioning from a low-information to a high-information investor.
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Moreover, if you have picked a fund which has outperformed, you cannot count on the outperformance to continue.
What's more, if you never got to chance your arm at coding in your youth, they might be fun to try as an adult, if only to give your offspring the joy of outperforming you.
Even if the market outperformed you over the last couple of years, don't make emotional changes to chase returns.
And you would do this so that you can understand why they're outperforming you in some areas, what gets them results and in some cases, it's even a way to find out what you're doing better than your competitors – so you can keep improving.
If you think that your peers are consistently outperforming you in mental stamina, focus, and concentration and that it is a problem in your life, consider talking to your doctor about testing for learning disabilities or ADHD.
Following are excerpts from the conversation: Q. Coming out of past recessions, have small caps outperformed large caps? A. Typically, you see small caps outperform when you get stabilization and recovery.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com