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.
NOTE: The articles and information at the above links contain the opinions of the author(s) and those interviewed by the author(s) but not necessarily Carlson Capital Management and does not represent a recommendation of any particular security, strategy or investment product. The opinions of the author(s) are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. These articles are distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. Past performance is not indicative of future results and no representation is made that the stated results will be replicated.
