Good asset management practices are strategic and evolutionary, not stagnant. You must keep your long-term goals and objectives firmly in mind while allowing yourself the flexibility to evolve as new research provides better solutions to the risk management problem, or as new market opportunities present themselves. Discipline is the key to success for the long-term investor. He or she must not fall into the trap of managing holdings by newspaper headline, sound bites, mindless prediction, gut feelings, or last year’s results.
Developing a successful, modern investment strategy is a lot like gardening. Both activities require patience, discipline, and faith. Periodic reviews should be viewed as an opportunity for fine-tuning and corrections, not radical revisions and second-guessing.
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