How to Be an Equity Investor

Our theory is everything is driven by value, number one. And the important thing is risk control. So that where potential returns are very high, perspective returns are high, and risk is low, then you want to lock those good returns in for as long as possible. But the converse is also true. When risk is high and perspective returns poor, then you wanting a short duration as possible. Back in 82, we have all equities. We have 100% in equities. By the time we get to the late 90s, we've got equity markets that look very rich and offer poor returns but bonds still were amazingly attractive. You could get 4.5 real yields in government