Process vs Outcome
The practitioner discipline of grading investment decisions on two independent axes: was the analytical process sound (thesis well-constructed, evidence quality high, falsification trigger named in advance) AND was the realized outcome good (positive P&L net of opportunity cost). The two axes generate a four-quadrant scoring matrix that separates skill from luck. Most retail investors implicitly collapse the matrix into a single P&L axis and learn the wrong lessons from both lucky wins and unlucky losses.
Lessons that use this term
Related terms
Active Management · Active Share · AI Revenue · Anchoring Bias · Cost of Capital · Creation Unit
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