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The Behavior Gap
The behavior gap is twice as important as the fee differential between active and passive managers. In an close system, you know, some one's got to win. And here we are saying the investors are losing a undred base points per year. There was a great paper on this that. richard sloane published in two thousand and 15 called wealth transfers from equity transactions. The most trivial example i can think of is letting someone sell their shares if they're undervalued. Their assets are all just cash or something objectively less valuable than what people would like them to be. But it doesn't seem to make sense because there are other entities out there that interact with investors.