It’s going to be harder – 2nd quarter, 2018
Jul 12, 2018
By Tye Bousada, portfolio manager
We believe your behaviour will likely have a bigger impact on your returns than we will as the managers of your money.
We also believe behaviour is hard to teach. We think about how hard it is to change for the better. We may have the best intentions to do so, but often fail in modifying our behaviour to achieve the desired outcome. If we can’t even change ourselves as often as we’d like, why do we think we’ll be able to change others?
Maybe we’re fools for trying, but this commentary is dedicated to modifying how you behave in the future with your EdgePoint money. We believe that behaving a certain way with your investments will increase your probability of a positive experience.
Nobel laureates have written textbook after textbook on behavioural finance. These very smart people have dissected the human condition in excruciating detail. We’re not Nobel laureates and we don’t think you want to read a finance textbook. Therefore, this commentary will focus on helping you understand only two behavioural elements:
- We believe returns will be lower and volatility higher in the future and that you should behave accordingly with your EdgePoint investment.
- That anything worthwhile usually takes time to accomplish and building wealth with EdgePoint isn’t any different.
Read the rest of the EdgePoint commentary here >>