To paraphrase Edmund Burke, the only thing necessary for the triumph of bull-shit is for good men to do nothing.
Investing is tricky. Investing on behalf of others is trickier. More often than not, it is very hard to differentiate between skill and luck. Unfortunately, in the short-term, luck overshadows skill by a mile while it takes decades for skill to shine through. After all, luck eventually runs out.
The only way out of this Catch-22 is to clearly spell out an investment strategy upfront and follow it to a T. A systematic strategy that is statistically robust will eventually outshine a discretionary approach. Why? Because humans suck at making rational decisions when faced with uncertainty in probabilistic scenarios.
The reason we started this newsletter was to highlight robust, evidence based, systematic strategies while calling out some of the things discretionary managers claim to deliver but never do.
We will be in your inbox every Sunday. Watch out for us.
Free Float
All the best sir.