As a result of overdiversification, their (active managers) returns get watered down. Diversification covers up ignorance. Active managers haven't done enough research into any of their companies. If managers have 200 positions, do you think they know what's going on at any one of those companies at this moment?
Bill AckmanIn order to be successful, you have to make sure that being rejected doesnโt bother you at all.
Bill AckmanShort-term market and economic prognostication is largely a foolโs errand, we invest according to a strategy that makes the need to rely on short-term market or economic assessments largely irrelevant.
Bill Ackman