Capital Allocators – Inside the Institutional Investment Industry Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137)
4 snips
May 11, 2020 
Laurence Siegel, Gary Brinson director of research at the CFA Institute Research Foundation, shares insights from his rich career in investment management. He debunks ten prevalent myths of investing, drawing from his impactful research at the Ford Foundation. The discussion extends to his book, 'Fewer, Richer, Greener,' making a compelling case for long-term prosperity despite current challenges. Siegel also reflects on the evolution of investing, the influence of machine learning, and the importance of understanding market dynamics for sustainable growth.
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Manager Selection
- Due diligence and manager meetings may not guarantee market-beating returns.
- Finding managers with truly new and different insights is key for exceptional performance.
Index Fund Investing
- Invest in index funds and hold them long-term.
- Avoid market timing, as it often leads to buying high and selling low.
Indexing and Market Efficiency
- Increased indexing does not necessarily make markets more inefficient.
- Active management's underperformance suggests markets are not overly influenced by indexing.
