One of the most overused sayings in the investment world is to “buy what you know”, to which I often reply that this may be true in theory, but in practice, people often overestimate what they know or have an illusion of knowledge. Yet, when it comes to fund managers who are managing portfolios with a thematic expertise, one can show that they outperform when they buy what they really know.
Buy what you know: Fund edition
Buy what you know: Fund edition
Buy what you know: Fund edition
One of the most overused sayings in the investment world is to “buy what you know”, to which I often reply that this may be true in theory, but in practice, people often overestimate what they know or have an illusion of knowledge. Yet, when it comes to fund managers who are managing portfolios with a thematic expertise, one can show that they outperform when they buy what they really know.