Outliers and Competitive Advantage


Competitive advantage is often driven by outliers. However, betting on outliers can be risky business. This video illustrates that average performers might be better over the long haul unless you are able to really identify who the outliers are (and it is not based on luck). Denrell and Fang have a nice paper on how trying to pick extreme outliers will mean that you are wrong most of the time.

Contributed by Russ Coff

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s