Research Review: Moral luck and investment
Rob Hamshar | Portfolio Construction Forum | 24 May 2024 | 1.50 CE
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...
