What to do When a Strategy Performs Poorly
Larry Swedroe Overview:
The course teaches how the lack of patience, and the all-to-human problems of recency bias, relativism, tracking variance regret, and engaging in resulting leads many investors to abandon even well-thought-out plans and underperform the very funds in which they invest. The course was developed so that investors would understand that risk assets have self-healing mechanisms that tends to result in reversion to the mean of long-term returns. The information presented will prepare you with the wisdom you need to avoid making the behavioral errors that most investors succumb to-errors that cause investment plans to fail
Areas Covered in the Session:
- Why patience and discipline, adhering to a well-thought-out plan are necessary to achieving your financial goals
- All risk assets go through long periods of poor performance, which is it takes patience and discipline to stay the course, adhering to your plan
- Why diversification is the key to achieving your goals, and the behavioral errors that cause investors to abandon their strategy
- Assets that experience poor performance have “self-healing” mechanisms, helping you to become subject to recency bias and have the discipline to stay the course
- Current valuations, not historical returns or recent returns, are the best predictor of future returns
- The knowledge needed to avoid the behavioral errors of recency bias, tracking variance regret and engaging in resulting
Who Will Benefit:
- Individual Investors
- Institutional Investors
- Researchers
- Investment Advisors
Speaker Profile
Larry Swedroe Since joining the firm in 1996, Larry Swedroe has spent his time, talent and energy educating investors on the benefits of evidence-based investing with enthusiasm few can match.
Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” The second edition was published in 2005. He has since authored eight more books: “What Wall Street Doesn’t Want You to Know” (2001), “Rational Investing in Irrational Times” (2002), “The Successful Investor Today” (2003), “Wise Investing Made Simple” (2007), “Wise Investing Made Simpler” (2010), “The Quest for Alpha” (2011), “Think, Act, and Invest Like Warren Buffett” (2012) and Enrich Yourself (2024).
He has also co-authored nine books about investing: “The Only Guide to a Winning Bond Strategy You’ll Ever Need” with Joe Hempen (2006); “The Only Guide to Alternative Investments You’ll Ever Need” with Jared Kizer (2008); “The Only Guide You’ll Ever Need for the Right Financial Plan” with Kevin Grogan and Tiya Lim (2010); “Investment Mistakes Even Smart People Make with RC Balaban (2012); “Reducing the Risk of Black Swans with Kevin Grogan (2014, second edition 2018); “The Incredible Shrinking Alpha” with Andrew Berkin (2015, second edition 2020); “Your Complete Guide to Factor-Based Investing” with Andrew Berkin (2016); “Your Complete Guide to a Successful and Secure Retirement” with Kevin Grogan (2019, second edition 2021); and “Your Essential Guide to Sustainable Investing” with Sam Adams (April 2022)..
Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television shows airing on NBC, CNBC, CNN and Bloomberg Personal Finance. Larry is a prolific writer, contributing regularly to multiple outlets, including Morningstar, Wealth Management, The Evidence Based Investor, Financial Advisor, Alpha Architect, and Seeking Alpha.