…… not the kind an NCAA coach wants his players to fight for during March Madness, but rather the one investors were rooting for after the vicious end to 2018. Well, we got a big one in Q1 2019. Nervous investors are asking, “So now what are you going to do?” We smile and stay quiet. Success in the investment business is both very hard—and very easy. It’s very easy if you can avoid the temptation to make market calls or portfolio decisions based on questions like these. When we go through bouts of volatility, as we did in 2018, it is harder than usual for some investors to ignore the siren song and the urge to do something. Sometimes, these doers get it right; more often they get it wrong. For mental health reasons, we humans are programmed to remember our wins more than our losses, so the errors fade from memory while our correct calls become bolder and more profitable each time they’re recalled from memory. Outguessing competing investors who often possess more information than you do is a hard way to outperform the market. In fact, great investors outperform when they take advantage of the decisions that less-well-informed investors make.This is an excerpt from a longer article. Please download the PDF to read more.