Rebecca Teltscher

As the 2014 World Cup kicks off, Lyle Stein writes an insightful and witty commentary on the actions of goaltenders during a penalty shot versus the actions of an investment manager. The theory behind the article is that the tendency to act or trade, if often viewed as more positive than the manager who uses a buy-and-hold approach. However, frequent trading does not always equate to stronger performance over time.

Excerpt from Article:

Professional investors, like professional goalies, work in high-performance occupations. Bombarded with constant information (some useful, some not), investors make decisions that are often right, but frequently not. While not viewed on world television like a World Cup goalie, the portfolio results of investment decisions are readily seen and easily scrutinized. An active manager is easily perceived as having a good handle on all the financial and economic information processed.

To read the entire article, click here.

lylestein

Lyle Stein, Managing Director Leon Frazer & Associates

 

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