I am sure I have bored plenty of people in recent years by repeating the mantra ‘process over outcomes’. There is probably no more important frame or model to apply when considering how we make investment decisions. In an environment where skill is often overwhelmed by luck and randomness the more we focus on results alone, the worse our results are likely to be.
Drawing a strong and consistent link between process and outcomes is critical to making good judgements, but it is not everything. There is a third element that is often lost or obscured, but should be the starting point for any investor:
More here – Behavioural Investment
