Seeking Alpha

The Asset Allocator: Process Precedes Stockpicking (Podcast)

by: SA For FAs
SA For FAs
Senior Editor, FA Content
Summary

Process matters more than stock picks and stock pickers.

Investors too often burn themselves by going after the hot managers, their chasing of returns paradoxically yielding them poor ones.

But investors increase their wealth over time by virtue of their being asset owners, not by thinking they can single-handedly outsmart most of Wall Street.

It’s time to put the focus back on asset allocation.

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Process matters more than stock picks and stock pickers.

This podcast (4:58) argues that, paradoxically, by going after attractive investment returns, investors often end up with poor investment returns. But by adhering to a process that captures investment returns, investors needn’t sweat the details.