Whether it's the continuing rise of "quality stocks" (a la ARB,...

Whether it's the continuing rise of "quality stocks" (a la ARB, REH etc) being driven by all the Buffett worshippers, or the believe that machines will deliver optimal outcomes, or whether its any notion of investment purity, what investors always forget is that in pitting themselves against "The Market", they are competing against themselves.

We all want to believe that the market is some third party. Well no. The market is us.

Which means that any notion or any approach that the consensus adopts, will ultimately deliver mediocrity. Mediocrity can be fine - and probably should be. But the paradox is that an approach that becomes popular, because it's superior, cannot deliver a superior outcome.

Which brings me back to "machine investing". If it becomes popular because it is superior, then it will do no better than an index fund. Which means we will be back to square one. If we want the best investment outcome that can be delivered without human intervention, then what we want is index investing. And we don't need machines for that.