Reasons to Pass – A Guide to Making Fewer and Better Investments
The secret to success in asset management is conviction and confidence. Analysts who exhibit these qualities are more likely to be promoted; clients prefer portfolio managers who exude confidence in their ability to perform well in the future. These attributes, however, are detrimental to long-term investment performance and effective decision making. Such levels of certainty are not justified by the complexity of the future.
Ralph Birchmeier, a seasoned practitioner, contends in Reasons to Pass that waiting patiently for the few investments deserving of capital allocation is the best way to construct a portfolio. After outlining the fundamentals of success, he looks at particular justifications for forgoing investments and describes behavioral biases that impede the best possible decision-making. The wisdom of experience demonstrates the importance of caution, even when both professional and individual investors are tempted by different chances. A long-term investing approach necessitates humility and the ability to tolerate uncertainty; in most cases, it’s preferable to pass.
By simplifying the investment process and guiding readers through the intricacies of the financial world, Reasons to Pass takes investing back to its most fundamentals. This book provides a priceless fresh viewpoint on long-term investing by highlighting the dangers of arrogance and the value of humility.
Size : 6.7 MB | English | 2023 | PDF | 9780231207089