Fund managers often present themselves the way that they believe appeals to investors — and, in doing so, say the wrong things. They focus far too much on the short-term, and try to project confidence that can make them seem as though they don’t understand the complexity and uncertainty of markets. Fund managers, instead, should adapt an attitude of humility. They should admit their mistakes, when they are made, and acknowledge too when their successes are due to good fortune.
- Active managers often focus on the wrong things and obsess too much over short-term issues.
- For active managers, confidence is usually overvalued as a personality characteristic.
- Typically, active managers tend to present themselves in a manner that they believe will most appeal to investors, sometimes at the expense of being candid.
““I can’t confidently predict the outcome of this event and, even if I could, it would be difficult to gauge how markets would react”.”
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