Loose Change – 3-20-2018

 

I’ll try and do a couple of these per month.  Hope you enjoy learning as much as I do. – Adam

  • Short Term Outperformance vs. Long Term Outperformance – Being in the middle of the pack consistently is where we strive to be every year.
  • Active Funds Shone in Selloff, Just Like They Said They Would – I’m not saying that people should abandon a low-cost ETF strategy, but more to point out that there is a time and place for everything, which is why we prefer multi-strategy portfolio construction.
  • The Power of Narrative  – “There are three important attributes required to be successful in the investment industry: (1) you need the analytical chops; (2) you need to understand human psychology; and (3) you need to be able to explain what you’re doing and why to colleagues and clients alike.”
  • The 5 Elements of Effective Thinking – So simple, yet so difficult.
  • The graphic below amazes me more than anything I’ve seen in the past 5 years.  It’s no wonder that 9 out of 10 day traders don’t make it…

“If we can’t tolerate a possible consequence, remote though it may be, we steer clear of planting its seed.” – Warren Buffett — Berkshire Letter, 1996

“Financial advisors (and financial services in general) struggle with consumer trust not due to a perceived lack of competence, but a lack of warmth (consumer expectations of good intentions).” – Herman Brodie