Michael Mauboussin: The Coffee Can Approach: Why Doing Less Can Leave You With More Money
Excerpts (via Michael Mauboussin @ Legg Mason)
Investors often make changes to their portfolios—with the best of intentions—that do not add value.
These mistakes include reallocation of a portfolio from one asset class to another as well as switching from one manager to another within an asset class.
Analysis through simulation shows that investors would be better off extending the industry standard three-year window for manager assessment.