Thoughtful new musing out from Michael Mauboussin of Legg Mason on “untangling skill & luck”. It contains gems like this:
There’s a simple and elegant test of whether there is skill in an activity: ask whether you can lose on purpose. If you can’t lose on purpose, or if it’s really hard, luck likely dominates that activity. If it’s easy to lose on purpose, skill is more important.
The whole thing is embedded after the jump.