Thursday, November 8, 2012

Quote (differentiated investment process)

“The great race for first flight tells a story that resembles the competitive landscape of the investment management industry. In order to produce superior compounded returns over time I believe one must not only have a differentiated view but more importantly a differentiated investment process. The vast majority of professional investors attempt to unlock the key to compounding success through horsepower at the expense of wing design/investment process and pilot control/manager skill.” –Christopher Begg, from East Coast Asset Management's Q3 Letter


If you haven’t read the ECAM Q3 letter yet, I highly recommend at least reading the two-page addendum  entitled "Investment Process/Personal Evolution – Inventing a 'Learning' Machine". He mentions a great quote from the book Jonathan Livingston Seagull:
The elder Chiang reminded Jonathan: “It’s strange. The gulls who scorn perfection for the sake of travel go nowhere, slowly. Those who put aside travel for the sake of perfection go anywhere, instantly.”