Review of “Winning the Loser’s Game”
This investment classic by Charles D. Ellis, managing partner of Greenwich Associates, shows the importance of investment policy.
Drawing on his experiences, he points out the futility of “short termism”, striving to attain short term performance by stock picking and market timing, compared to the large benefits from the successful implementation of investment policy, which he believes is the key driver of investment success. Ellis points out, quite rightly, that client needs and comprehension of the investment management process are very important to overall success of an investment program.
“Only with shared understanding of the nature of investing and capital markets will investment managers and their clients escape the present paradox in which little or no attention is devoted to the truly important work of developing and adhering to wise and appropriate investment policies that can, over time, achieve realistic and relevant investment objectives.”