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Meb Faber - Quant Savant

The Business Brew

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How Real Career Risk Is at Driving Allocation Decisions?

Ricardo: How real do you think career risk is at driving these kind of allocation decisions? In aggregate? It's extremely real. Academic literature shows that the vast majority of institutions are just as bad as individuals at chasing returns. Most people operate on sort of this zero to three year time horizon, and that's the sort of max investment horizon. Likening it to a falling exit would be like cutting your losses back 300 years right?

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