This is happening in Commercial Real Estate as well… ‘’Success in investing has two aspects. The first is skill, which requires you to be technically proficient. Technical skills include the ability to find mispriced securities (based on capabilities in modeling, financial statement analysis, competitive strategy analysis, and valuation all while sidestepping behavioral biases) and a good framework for portfolio construction. The second aspect is the game in which you choose to compete. Some games are highly competitive and others are not. You want to find games where your skill is greater than that of the other players. Your absolute skill is not what matters; it’s your relative skill. Think about it this way. Say I invited you over to my house to play poker on Saturday night—and that you like to win. Your first question should be, “Who else will be there?” If I tell you that there will be some players that are as skilled as you and a couple of rich players who don’t play well, your response should be: “I’ll be right over.” Why? While you know the amount of money entering the house at the beginning of the evening and leaving at the end of the night is the same, you can see how your gain will come at the expense of the weaker players. On the other hand, if I tell you that the players expected that evening have skill that is equivalent to yours, the response should be: “No thanks, I’m busy.” In this case, there’s no reason to believe that you will come out a winner because there is no mismatch in relative skill. And if you find yourself in a game unsure of which players are weak or strong, learn a lesson from Warren Buffett: “If you’ve been in the game 30 minutes and you don't know who the patsy is, you’re the patsy.” https://lnkd.in/dRmi-2pi