Quote for the Week
The really hard part about investment policy is not figuring out the best feasible combination. While it takes some time and analytical discipline, this part of the problem-solving is far from advanced science.
The really hard part is managing ourselves: our expectations and our interim behavior. Walt Kelly’s Pogo puts it as “we have met the enemy and he is us.” Most investors are too optimistic about the long run and much too optimistic about how well they will do compared to the averages, so they set themselves up for disappointment.
Even worse, most investors do harm to their longer-term investment results by trying and trying again to do better: changing managers and changing asset mix at the wrong time and in the wrong way. — Charley Ellis (source)
From the Archives
Last Call
- 13 Thoughts to Survive and Grow Through a Market Fall – Safal Niveshak
- Ambiguity is Worse than Risk – Klement on Investing
- The Less Fund Investors Did, the Better They Did – Basis Pointing
- A Tale of Two Drivers – Building Things that Last
- What is Survivorship Bias, and Why It Matters for Your Daily Life – Clear Thinking
- Seth Klarman: Margin of Safety (video) – AIM
- Allison Schrager on Personal Risk (video) – CFA
- The World’s Largest Search Doesn’t Want You to Search – Honest Broker
- Canyon of the Ancestors – Smithsonian