You aren't going to beat Michael Jordan at basketball, you aren't going to beat Tiger Woods at golf, and you aren't going to beat a trillion-dollar fund but investing in the exact same way that it does.
Market participants have been fooled by Institutional Wall Street into thinking that the best approach to the market is the one that is used by Institutional Wall Street. If you are going to invest like they do then you are reliant on them for advice and you are unlikely to produce superior returns.
If you want to beat the Wall Street giants, you have to play a different game. You will never have the research or the relationships with management that Wall Street insiders have. You will never have the capital or access to deals that big funds have.
So how do you beat institutional Wall Street? What advantages does the little guy sitting at his home office in North Carolina have that the big New York City Funds don't have?
The answer is speed and flexibility. You beat the big players by moving faster than someone with billions of dollars that they have to invest. Most people don't understand how difficult it can be to put huge sums of money to work. Warren Buffett has commented about how he is handicapped by his inability to be flexible and move quickly. He would likely be a much more active trader at times if he was working with a much smaller amount of capital.
Once you appreciate the fact that being a small investor is actually an advantage, you can start to develop ways to use that edge. That is not an easy task but when you focus on speed and quick reactions you will eventually develop a style that allows you to invest like a shark.
I use the shark metaphor because the shark survives with cunning and speed. It is constantly in motion and always hunting for its next meal. It is the apex predator in the ocean and swims circles around the huge and cumbersome whales.
Much of my writing is focused on trying to find ways to use that edge. The first step is simply cultivating the right mindset. Stop thinking like you are the manager of a giant fund. Consider why institutional Wall Street does what it does and offers the advice that it doesn't.
Recent trading in some of the highly speculative electrical vehicle stocks is a good example of the difference. Traditional Wall Street scoffs at these stocks that they view as lousy investments and wildly overvalued. Of course, a billion-dollar fund isn't going to buy them because they are too inflexible but the shark-like investor is not going to ignore the opportunities in stocks that are doubling in a matter of days.
Yes, there is a high level of risk but that risk is mitigated when you are extremely vigilant and move fast. That is a game that the small guy can play. You aren't going to beat Michael Jordan at basketball but you might beat him playing poker.