Here’s a link to an interesting graphic from Michael Batnick’s blog “The Irrelevant Investor” that charts the careers of legendary investors versus the S&P 500:
LINK: Most important investors of all time
He summarizes his survey by pointing out the lack of new “star” managers.
I believe that this phenomenon has much to do with the way that the investment industry has become systematized.
Meeting with fund managers, you don’t get the feeling that anyone makes ‘bets’ any more. There is too much at stake to risk being wrong. So you systematize the process to ensure everyone has plausible deniability, and no one gets too big for their britches. I recently attended an investment presentation where the portfolio manager was asked what his biggest ‘miss’ was. He responded that he didn’t buy back into a stock that he had sold that proceeded to rise 30%. In the present circumstance, 30% is a lot. But missing a pass for 30%? Come on.
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