Have been random sampling 35 year stock returns from normal distribution for an hour and haven't yet seen a sample with Buffett returns.
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The parameters were from The Intelligent Asset Allocator from Bernstein, 8% average and 20% standard deviation with normal distribution.
Mandelbrot argued that stock market returns (price movements?) followed this distribution:pic.twitter.com/4jGmixQfQZ
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Nobody argues mkts are normally distributed post-LTCM, but even with those assumptions the huge variance is illustrative.
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Not just huge, infinite! Not sure I buy it, but who knows.
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