Friday, March 18, 2016

Process vs. Outcome

Recently a well known financial advisor wrote a very good article concerning the difference between investing process and investing outcome.  It is easy to read and he provides some great examples so I encourage you to check it out:
I think his final paragraph summarizes the concept very well:
“We never really know what the source of a good outcome is; however, we have a high degree of confidence what the probabilities are for a good process. A strong process is a guarantee — not of outcome or results, but of the highest probability of obtaining desired results. That’s why it is so important to investors.”