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Cliff Asness: Investors Should Avoid These Two Extremes

In this interview, Cliff Asness addresses the difficulty of assessing an investment strategy during challenging times. He cautions against two extremes: abandoning a strategy prematurely due to short-term losses or rigidly clinging to it without adapting when needed.

Cliff praises Warren Buffett’s resilience in adhering to his principles despite setbacks, emphasizing that while markets may evolve, core investment principles tend to change more gradually. However, he acknowledges that investors must be prepared to adapt in the rare instances of structural market shifts.

He underscores the importance of continuous improvement in all market conditions. During difficult periods, investors should critically evaluate their strategies to discern whether problems are temporary or indicative of a fundamental change.

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The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.

Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk

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