Why Investors Lose the Blame Game
When an investment firm plays the blame game, the loser is performance. That is the key finding of a new study investigating the impact of culture on investment results. “The critical thing to understand is that blame has been ‘outed’ as one of the major causes of dysfunction and failure for investment firms,” write the study’s authors, Jim Ware, CFA, and Jason Hsu, in the latest issue of CFA Institute Magazine.
More highlights from the September/October issue include:
- The case for behavioral portfolio management.
- How some investors are learning to outsmart high-frequency traders.
- Why investment managers need modern portfolio theory even if it is incorrect.
Plus articles on the rise of environmental markets, why organizational structure is a growing problem for investment firms, how changing market structure raises new questions about exchanges, and the “uneasy truce” between investors and credit-rating agencies.
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.
very interesting stuff. i wonder if kahneman and tversky did anything on “behavioral portfolio management”. this is a new concept for me. thank you for the post.