Enclosed is a NY Times article dated 26th November 2010, titled, A Dying Banker’s Last Instructions.
The article is about Gordon Murray-a former salesman at Goldman-who rose to become Managing Director at Lehman and CSFB. As he was diagnosed with brain cancer-he decided to pen a small book The Investment Answer.
The article mentions that Gordon Murray later in his career learnt about the failings of active portfolio management, which had taught him to erroneously believe It’s American to think that if you’re smart or work hard, then you can beat the markets.
Gordon Murray, later on in his career, is influenced by Dimensional-a passive mutual fund company, which teaches him, No one can predict the future with any regularity, so why would you think that active managers can beat their respective indexes over time?
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