← Back to context

Comment by nickpeterson

2 days ago

I know absolutely nothing about this, but it does strike me it might be self-fulfilling? Companies that have access to more investment tend to win more often, and thus become 'investment grade', while junk-rated firms fail because they don't have the runway?

If true, that might be a problem for society, but it doesn’t matter for investors. They only care about reliable predictions.