One of the most common pieces of advice given to investors is to have a process. But figuring out what that process should be is much more challenging. And determining…
Tag: Investment Process
How to Navigate a Stormy Stock Market in 5 Steps
A recent article by New York Times columnist Carl Richards offers investors a road map for riding out today’s market volatility: Give yourself a break: It’s okay to feel “scared…
Five Questions: Tackling Some of the Toughest Questions in Investing with Michael Mauboussin
By Jack Forehand, CFA (@practicalquant) There are many skills that can benefit you as an investor. Being smart is certainly an asset, although it can also get you in trouble…
One Fund's Long Time Frame is Paying Off
The Akre Focus Fund takes the buy-and-hold strategy seriously, according to an article in The Wall Street Journal. John Neff, one of the $9.8 billion fund’s portfolio managers, explains that…
Successful Investing: Process Elements and Personality Traits
“To be good investors or research analysts, we need the right genetic predisposition and then must create the right circumstances to practice and hone these skills,” writes Joachim Klement, CFA…
Knowing When Your Investment Process Has Failed
By Jack Forehand (@practicalquant) — It is widely accepted in investing that process is more important than outcome. Investing strategies that have no long-term basis can work very well in the…
What Gambling and the Oakland A's Can Teach You about the Importance of Process
By Jack Forehand (@practicalquant) — I have a friend who is an infrequent gambler and won money almost every time he went to the casino. He did it by exclusively playing…
Creativity in Investment Process
A recent article in the CFA Institute’s enterprising Investor explores the role of creativity in investing, highlighting legendary investor Peter Lynch’s comment to “invest in what you know,” but also…
How Your Brain Hurts Your Returns - And What You Can Do To Stop It
What’s the biggest obstacle to investment success? Validea’s John Reese says it may well be our own brains. “The capabilities of human beings’ brains are staggering,” Reese writes in his…