The longer the holding period, the lesser the variation of actual returns from expected ones. Using this principle should allow construction of actively-managed portfolios that outperform passive portfolios.
Author Archive | Wilbur Li
It’s intuitively appealing that long-term investing by active managers should be rewarded, but a new report quantifies many ways a patient investor can extract extra returns.
Given the allure of short-term beauty contest investing, how can we accelerate the shift towards a longer-term, pragmatic and sustainable approach to investing?
It’s human nature to want to join the fun when prices rise rapidly, especially with stories of a few dollars turned into millions, but these are the times to treat with the utmost caution.