Morehead: Investors are wrong 45% of the time; lacking humility causes blowups
David Morehead · David Morehead – Top Down Allocation at Baylor (EP.381) · Apr 22, 2024 · at 46:44
David Morehead, CIO of Baylor University's endowment, explains how he screens investment managers for character and humility during due diligence.
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“One of the key characteristics that we look for is humility, because in this business, you hope to be right, 55% of the time. Well, that means you're wrong 45% of the time, and so for the person who is unable to admit that they're wrong, that doesn't work for us, because the market's probably going to put you in a position where, like, you're wrong, you don't admit it, and then you blow up, and we want to avoid the blow-up.”
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