True intuitive expertise is learned from prolonged experience with good feedback on mistakes.
The complexity and challenge inherent in the role of today’s trustees makes the job hard, and very few decisions are straightforward.
Two of the key reasons for this are the complex framingof decisions, and the long-term timescale involved make it very hard to get meaningful feedbackon a given decision in a way that would allow corrective action to be taken or to “replay” decisions.
Trainee pilots spend many hours in a computer simulator before they reach the cockpit. By providing a safe environment for practicing and obtaining feedback, simulations can also help trustees become more informed, confident and effective decision-makers.
Summary: Implementing our investment principles means that it would be useful to measure the complexity of different assets and asset allocations via a complexity ranking. As complexity increases the average expected return tends to increase but the average fund manager … Continue reading Managing Complexity
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.