All professional, and most individual, investors recognize that they need to have some sort of benchmark for their portfolio. It probably should not be the S&P 500, unless of course you are a domestic, large cap equity manager. The specific benchmark you pick matters less than the fact that you have put some thought into the process.
Robert Seawright (@rpseawright) who blogs at Above the Market is a long-established figure in the investment blogosphere. Tadas got Bob on the phone Skype to talk about a recent post of his entitled “How’s Your Aim?” where he writes about the importance of having well-structured benchmarks against which we can measure our investment performance. I hope you enjoy the discussion as much as I did.
It just so happens that Bob recently did a longer form podcast with Daniel Crosby talking about how to overcome various behavioral biases. You can listen to that podcast here.
This is another episode in our series of “mini-pods” on The Compound Show.
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