The Trouble with the "Best" Securities

Fred Schwed's "Where are all the customers' yachts?" is one of the all time investing classics. It's amazing how little has changed since the 1940s when the book was first written - investors are still getting skinned and financiers are still getting rich using many of the same tactics. I thought I'd share a small section for you to ponder over the weekend (thanks to @PlanMaestro for the picture on twitter). It's particularly relevant now, as the pricing gap between the "best" and the "worst" is as wide as I have seen it.