The most underrated aspect of successful investing is sticking to your strategy through ups and downs!
Even professional investors have a hard time doing this with Value Line Funds being a classic example:
Even professional investors have a hard time doing this with Value Line Funds being a classic example:
Value Line company runs two services. One is their investment survey which identifies top-value stocks that you should invest in. They also run a mutual fund that follows a similar strategy.
But when the WSJ evaluated their performance, they found something really interesting.
But when the WSJ evaluated their performance, they found something really interesting.
Investors who followed their stock picks had an amazing gain of 76% over a five-year period (inclusive of the dot com crash!), but those who invested in their mutual fund lost 19% during the same time period..
The problem was that the fund never stuck to its own strategy and churned around its management team.
The new managers, hoping to outperform the company’s own strategy, dipped into stocks that were lower rated by the company’s own algorithm in the hope of finding “hidden gems”
The new managers, hoping to outperform the company’s own strategy, dipped into stocks that were lower rated by the company’s own algorithm in the hope of finding “hidden gems”
Loading suggestions...