Can an educated investor resist the performance promises that aren't real? In spite of hypothetical instead of real track record, investors were lured to invest, and the SEC investigated. Misleading advertising, and yet, how many investors would catch that? SEC: Adviser tweets not so sweet http://on.wsj.com/LugYnk
Try this for a brain teaser – what makes an investor successful? Luck or skill? Was it "alpha" or just being at the right place at the right time? How can you tell whether it's luck or skill that is creating the enviable returns?
Howard Marks offers compelling answers in his latest memo about The Role Of Luck In Investing http://www.businessinsider.com/howard-marks-on-luck-2014-1
Paul Sullivan finds the Investment Policy Statement, or IPS, to be relevant and timely for individual investors as well as the big institutions.
Just as a personal trainer keeps you focused on your fitness goals and exercise routines, your IPS reminds you of principles you wish to invest by. Those principles are best defined, not in the midst of a market boon or bust, but rather in dialogue with your advisor over a period of time – and reviewed annually.