Having the right investment beliefs is crucial; so is putting them into practice. This chapter provides guidelines for trustees and investment managers for delivering the right results. The essential point throughout the book is that finance is a relatively young discipline in which data are limited, biased, or both; and in which the ratio of noise to signal is very high. It is very difficult to know anything with a degree of certainty when it comes to investment theory. Therefore we must believe certain things, be able to differentiate between what we actually know and believe, and shape strategies according to these beliefs (Denison 2008).
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© 2011 Kees Koedijk and Alfred Slager
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Koedijk, K., Slager, A. (2011). (Re)engineering Your Own Beliefs. In: Investment Beliefs. Palgrave Macmillan, London. https://doi.org/10.1057/9780230307575_16
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DOI: https://doi.org/10.1057/9780230307575_16
Publisher Name: Palgrave Macmillan, London
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