Good Investing Means Having to Look Stupid Sometimes

Another great video nugget from the Manual of Ideas – this one has Broyhill Asset Management’s CIO Christopher Pavese explaining how bending to the will of clients has an adverse impact on investment results.

I know from experience that whenever you start hearing from investors about how terrible an underperforming asset class is (EM stocks these days), that’s when you’re really close to a bottom. In our strategic asset allocation portfolios, we do not permit¬†“a la carte investing” in general because if left unchecked, investor portfolios will always end up loaded with the sectors or asset classes that have already had a monster run and devoid of those that are about to outperform in the future.

Professional investing, over the long-term, means having to look stupid in the short-run. It also means talking investors out of driving in the rear-view mirror.


The Manual of Ideas (Youtube)

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