"'There was a beautiful study that was published in the The Journal of Finance a couple of years ago about the selection of institutional money managers. It basically found that the professionals who pick money managers, in this case it was pension funds, tend to buy high and fire low. They invest in whichever managers have the best trailing three-year performance and then sell whichever have the worst trailing three-year performance. The study showed that if they had flipped their decisions--if they had bought the ones with the worst three-year performance and sold the ones with the best--they actually would have gotten better returns.'"
Sunday, October 18, 2009
Interview of Jason Zweig on Neuroeconomics -- GuruFocus.com: