Investment Performance
"Real Men Do Not Use Benchmarks!"
From investment returns to investment performance ...
Most often, 'investment performance' is perceived as the return difference between the portfolio and some kind of yardstick or "benchmark".
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Some characteristics...
- Performance is inherently a relative concept
- Performance is not risk-adjusted per se
- 'You cannot eat performance' - performance is a rather abstract concept. It is important, but has to be put into proper perspective: at the end of the day, only absolute returns will be credited or debited to our accounts.
- In the end, all investing is relative - return investing.
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