Benchmarks matter. Investors who are serious about their performance in the markets need to be aware of their performance against relevant benchmarks. However for many individual investors getting caught up in the relative performance game can be harmful to their portfolios. In the end, investors are investing for a series of goals: home, college, retirement, etc. Investors spooked from the market or chasing the latest investment fad are unlikely to meet these important goals. Ultimately the right benchmark for you is a personal one. However it must be one that is both measurable and tracked on a regular basis. In today’s screencast thinking about the idea of your proper personal benchmark.
Posts mentioned in the above screencast:
Wall St. movie scares investors. (Marketwatch)
The story of how long-term investor has made money focusing on quality. (Bloomberg)
If beating the market isn’t the right goal, what is? (Random Roger)
What an investment adviser actually does. (The Reformed Broker)
On the importance of measuring performance. (Abnormal Returns)
Slow and steady wins the race. (Behavior Gap)