Investing can be hard. Finding the right companies. Evaluating their long-term competitiveness. Gauging “market sentiment” and it’s position on the arc from ‘Greed’ to ‘Fear’. Choosing to enter / to exit / to just stay put. Ken Heebner, who ran CGM funds from 1968 to 2016, was a legendary fund manager known for taking gutsy contrarian calls. For over a decade, his fund, CGM Focus returned 18.4% annually, beating the nearest comparable fund by 3.4%. Exceptional by any means. An analysis of investor returns in the fund, dollar-weighted returns taking into account capital flowing in and out, showed the typical investor lost 11% annually! Simply because the typical investor bought into the fund right after it had a strong run, then sold, when it saw
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