Of course there is no guarantee, but ignore it at your peril. Dogs tend to stay dogs. When I find a fund that has outperformed it’s competition for decades, I’m not going to buy the loser hoping it mean reverts.
Mean reversion itself is mathematically null. Even if you shoot 100 7′s in a row, the odds of shooting a seven are UNCHANGED. There is no mean reversion for crap shooters although many people think so. Truly random uncorrelated events are, well, uncorrelated. And I’d trust Peter Lynch with my money rather than my barber.
