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Stock Picking Success: Batting Average Or Slugging Percentage?

The article by Bill Stone on Forbes, titled "Stock Picking Success: Batting Average or Slugging Percentage?", discusses the metrics used to evaluate the success of stock picking. Stone argues that while many investors focus on the batting average (the frequency of successful picks), a more insightful metric might be the slugging percentage, which considers the magnitude of gains or losses from each pick. He explains that a high batting average might not necessarily translate into significant portfolio growth if the gains from successful picks are modest. Conversely, a lower batting average with a few high-impact winners could lead to substantial returns. Stone uses baseball analogies to illustrate how investors should aim for impactful investments rather than just a high number of correct picks, emphasizing the importance of the size of wins in stock picking success.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/bill_stone/2024/12/01/stock-picking-success-batting-average-or-slugging-percentage/ ]