The Urgency of the Present

I was recently reading an article referencing the Harvard Endowment’s 2016 fiscal year loss of $2 billion dollars. A clearly unacceptable outcome (insert sarcasm here). In light of a somewhat scathing student article from The Harvard Crimson, Isaac Presley of Cordant Wealth Partners had some great advice on how NOT to evaluate investment performance. This tends to be a topic we discuss frequently, but that is for a reason. Investor behavior regarding manager performance has been proven to have large ramifications for an investor’s long-term performance. I’ll give Isaac’s bullet points below, but go to his blog and read the details; it will be well worth your time, especially if you follow his advice.

Don’t assess your investment performance…

  1. 1. Over the wrong time frame
  2. 2. Without proper perspective
  3. 3. Expecting to outperform every year
  4. 4. With an expectation that corrective action is always required