# Alpha - Skill and Luck
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## [Results Reflect Your Skill and the Game You Are Playing](https://research-doc.credit-suisse.com/docView?language=ENG&format=PDF&source_id=em&document_id=805456950&serialid=LsvBuE4wt3XNGE0V%2B3ec251NK9soTQqcMVQ9q2QuF2I%3D)
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- The key to generating excess returns is to not only be skillful but to find attractive “games”—situations where
you can see where your excess returns are likely to come from.
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- diversity breakdowns, institutions versus individuals, and trading with investors who are
buying for non-fundamental reasons
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## [How Dispersion Creates the Opportunity to Express Skill](https://www.morganstanley.com/im/publication/insights/articles/dispersion-and-alpha-conversion.pdf)
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- The first point to make is that all the skill in the world is useless if there is no opportunity.
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- Second, the cost to play may be too high
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- Finally, skill is obscured if the opportunity does not offer differentiated payoffs - the paradox of skill
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- Finally, we offer a simple, four-step diagnostic process to allow a portfolio manager to disentangle performance.
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These tools are meant to encourage self-examination and to reveal areas where an investment process can
improve.
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 First, it is crucial to think about your source of edge and to align your organization’s process to serve that end. Second, a big part of winning is finding a game that allows you to show your skill.
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## alpha= skill * opportunity
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# Parents
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* Michael Mauboussin⏎