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Agree with you to a large extent on the details of the incident and it being insider trading but not on the futility of investing.
If you read Lynch Buffett Hagstrom Fisher Graham etc you can't help coming to the conclusion that we actually have an advantage over the big institutions.
Why? We don't have to comply with any rules Unless you are investing within a super fund of course. The institutions have to comply with myriad rules as well as short term numbers which leads to a large turnover which increases their costs greatly. The way to win is to not get sucked into playing by their rules, make up your own rules.
Don't diversify - focus instead.
Don't emulate an index - how can you outperform if you are emulating an index.
These are just 2 examples - make up your own rules.
Possibly your only rule might be - no rules.
Warren Buffett has 2 rules.
Rule 1 - Don't lose money.
Rule 2 - Remember rule 1.
I repeat again-don't get sucked in to playing by the big boys' rules. This also means filtering all the "accepted investing tenets" that you see in the financial media.

Good luck.
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