In a VUCA (volatile, uncertain, complex, and ambiguous) world, many of the factors that shape the outcomes of our decisions are unforeseeable and outside of our control. In short, luck often plays a significant role in determining our results.

When evaluating investment performance, we generally acknowledge a fundamental distinction between skill (e.g., a consistent ability to make quality decisions) and luck (e.g., positive or negative consequences attributable to chance or unforeseen events). Skilful decisions and actions may occasionally correspond to undesirable pe...