We can extrapolate from the study that for the long term individual investor who maintains a consistent asset allocation and leans toward index funds, asset allocation determines about 100% of performance.
Thanks to the greatly improved possibility of communication, we overrate its importance. Even stronger, we underrate the importance of isolation.
Although it is the biggest time-waster in office life, you must never underrate the importance of the memo. You will be judged by the volume of your paper work.
You should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold.
The most important key to successful investing can be summed up in just two words-asset allocation.
I think that the first thing is you should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold.
An asset allocation plan is based on your personal circumstances, goals, time-horizon, and need and willingness to take risk.
Never underrate the boss! The boss may look illiterate. He may look stupid. But there is no risk at all in overrating a boss. If you underrate him he will bitterly resent it or impute to you the deficiency in brains and knowledge you imputed to him.
On average, 90 percent of the variability of returns and 100 percent of the absolute level of return is explained by asset allocation.
People want to make sure there is flexibility to reallocate assets. They are trusting us to make the asset allocation decisions.
I think people underrate the importance of investing in your communication skills as a way to progress in your career.
I don't often know where my ideas come from. Maybe it's the fact that I'm obsessively regimented in my analysis, borderline autistic. But whether it's bond selection or asset allocation, we can do it better than just about anybody around.
Air Power is, above all, a psychological weapon - and only short-sighted soldiers, too battle-minded, underrate the importance of psychological factors in war.
The difference between success and failure is not which stock you buy or which piece of real estate you buy, it's asset allocation.
The most important thing you can have is a good strategic asset allocation mix. So, what the investor needs to do is have a balanced, structured portfolio – a portfolio that does well in different environments…. we don't know that we're going to win. We have to have diversified bets.
We believe that people moving their portfolios to an overweight in bonds will be disappointed over the long-term and will significantly underperform an asset allocation that over-weights equities.