Don't just do something, sit there

Why does value investing work over the long term? Partially because patience is not popular, forming the basis of an enduring competitive advantage for those who wait well (not just stubbornly, but well) . Jason Zweig does a very nice job capturing this idea:

"We talk about investment management firms, but we don’t really talk about investor management firms. For anyone who’s in the portfolio management business, managing your investors is at least as important as managing your investments. There is a reason why value stocks tend to outperform over the long run … the whole reason they work in the long run is because they fail in the short run. And for any investor to be able to capture a premium return from any factor, you have to be there long enough to participate. There are a lot of active managers who have a great approach and philosophy and implementation, but I think the ones who are most admirable are the ones who think a lot about managing their investors as well as the investments."

The information on this blog has the intent of communicating critical philosophies with current and prospective investors who would entrust ICI with their precious capital. It's important that we discuss topics like volatility and risk so our position is understood in attempt to create a magnet for compatible investment philosophies. When there are mismatched beliefs about crucial topics such as these, unexpressed expectations are often unmet and patience becomes difficult. Patience and trust go hand in hand and we only expect a client to have as much patience as they do trust in us.

It's easy to remark that patience is not popular and leave it at that, but to be fair there's a reason. Patience can be scary. I came across a well written article that describes this reality well from an investor's standpoint. You can find it here.

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