STREET DOGS: Not so simple
Four reasons why the investment industry favours complexity
Simplicity "has been difficult to implement in modern life because it is against the spirit of a certain brand of people who seek sophistication so they can justify their profession." — Nassim Taleb
From Ben Carlson at A Wealth of Common Sense, four reasons why the investment industry favours complexity:
Simplicity "has been difficult to implement in modern life because it is against the spirit of a certain brand of people who seek sophistication so they can justify their profession." — Nassim Taleb From Ben Carlson at A Wealth of Common Sense, four reasons why the investment industry favours complexity: It’s interesting. What sounds more stimulating as an allocator of capital? Travelling to New York, Silicon Valley and London for due diligence trips to meet with hedge fund, private equity and venture capital managers; getting to hear complicated strategies, alpha, new technologies and "what sets us apart"? Or choosing a sensible asset allocation, keeping costs low, avoiding crippling mistakes, setting reasonable goals and doing nothing most the of time. They think it’s their job. Most institutional investors assume their job is to outperform the markets and their benchmarks to earn their keep. Most are also ultra-competitive and want nothing more than to beat the performance number...
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