There’s a classic line in the 1987 movie Wall Street where Michael Douglas’ character, Gordon Gekko, states, “Lunch is for wimps.” The implication is that in the business of money management, there’s no time to waste, certainly not for something as trivial as lunch. With only so many hours in the workday and a never-ending stream of new information to digest, the idea is that analysts and portfolio managers must spend every waking minute trying to gain an edge. This narrative is powerful, and on the surface even seems logical. However, when we step back and examine the evidence, we find that more activity doesn’t lead to better performance. In fact, more "doing" tends to correlate with underperformance. In this recommended reading article, The Tao of Wealth Management, Jim Parker, Vice President at Dimensional Fund Advisors, reflects on this dynamic and discusses the difference between activities that actually add value versus those that do not.

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