In his 2001 letter to Scion Capital members, Michael Burry writes:
For some reason the "quarter" has been set upon as an ideal unit of time in the investment world. Yet in terms of measuring investments prowess, a quarterly compartmentalization of returns is no better than a monthly, weekly, or daily division of returns. Indeed, one of the most harmful aspects of human nature in terms of the investment process is the tendency to extrapolate to any extent into the future a manager's performance in the most recent period. Enclosed is a 1985 U.S. Trust memo that, with striking data, addresses this notion. I urge you to take the time to read it. I trust you will find its conclusions as timeless and as powerful as I find them; they are indeed relevant to your investment in this Fund.
Does anyone know which memo he is referring to? Any help would be greatly appreciated.
Submitted July 15, 2023 at 03:05AM by takeba_yukari https://ift.tt/hji6SMp
