The Truths We Seek
What The World Of Investing May Teach Us About Spirituality
You’ve got to guess at worst cases: No model will tell you that. My rule of thumb is double the worst that you have ever seen — Clifford Asness, AQR Capital
This article is dedicated to a legend in the world of investing — John C. Bogle. John’s work help put a fresh pair of eyes on millions of people around the world as they looked at the markets and their investments. John was the founder of Vanguard — a firm that was based on a truism. A truism that — over the longer term, market indices will outperform active fund managers. Today, Vanguard has $5.1 trillion of Assets Under Management (AUM)- that’s more than the GDP of Germany, the U.K. or France (in nominal terms). John had his own unique way of deciphering a simple truth about markets in the long run. We also seek many different types of truths. Of course, all of us are ultimately chasing eternal truths-truths as old as time itself. This article outlines the pursuit of truth through the lens of the various investment strategies adopted by investors. It ends by explaining the ultimate alpha we all chase in our own unique and varied ways.
