Charles Ellis, Winning the Loser’s Game, McGraw-Hill, 2002
In a winner’s game, the outcome is determined by the correct actions of the winner. In a loser’s game, the outcome is determined by the mistakes made by the loser. Professional tennis is a winner’s game. The outcome is determined by the actions of the winner. Amateur tennis is a loser’s game. The outcome is determined by the actions of the losers, who defeat themselves.
The best way to minimize the mistakes or play the Winner’s Game rather than Winning the Loser’s Game is to do passive investment i.e. index investing. It results in a Win-Win Game for everybody. Individual investors should invest in equity-based index funds around the globe, have a time horizon of decades, and follow explicit, well-thought policies.