[NYC] cabbies drive in much the way that people typically manage portfolios – alternately “putting pedal to the medal” and slamming on the brakes.—-Bob Seawright, CIO Madison Avenue Securities
I laughed when I read this, thinking back to a NYC cab ride to JFK to catch an ill-fated flight back to Los Angeles. One of our portfolio managers, John Lewis, was in the cab with me and I thought he was either going to yak out his window or club the cabbie with his briefcase. Let’s just say that the cabdriver made full use of both the accelerator and brake pedals.
Is it any wonder investors have a tough time making money when they can’t discipline themselves to coast occasionally?
It’s important to make portfolio changes when necessary—and equally important to know when to leave things alone. As investment professionals, we spend our careers trying to learn the difference.