Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www-business-standard-com-nalsar.knimbus.com or the Business Standard newspaper
Kirti, a selector, wants to make money by backing a batsman based on his long-term performance. After scrutinising the statistics of several batsmen over a hundred matches, he decides on one. However, he gets upset when his chosen player doesn’t perform well in the next match, and in fact the entire series. He overlooks the fact that the other batsmen have fared equally poorly.
Despite the chosen batsman still having the best average performance over a hundred matches, Kirti’s disappointment doesn’t abate. He unrealistically expects the batsman he has backed to perform well every time, forgetting his initial strategy of backing a batsman based on his long-term performance.
Cut to investments. I narrated this imaginary story to our client Radha. She was going through the status report on her investments started six months ago. She expressed unhappiness at their rather low returns and enquired whether they needed t
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? Log in NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.