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The Most Inportant Investment Factor - Behavior

Cullen Roche gives his take on a recent Richard Bernstein podcast;

“A sub optimal strategy that you can execute is better than an optimal strategy you can’t execute.”

" As Bernstein said, the sub optimal strategy that you remain loyal to is likely to beat the optimal strategy that you cheat on. But how do we capture behavioral alpha?"

Probly could also apply to individual funds I invest in. The fund may have great long term returns but can I be disciplined to stay the course? And as my time horizon changes my investment horizon should change as well.




https://www.pragcap.com/important-investment-factor-behavior/

Comments

  • Thanks Bud. Excellent article.

    Same conclusions I've made over the years. In my revelation, there are no perfect funds and there is no perfect portfolio. But there is an imperfect approach to investing that will kill returns... constantly pursuing the perfect fund and the perfect portfolio.
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