Rational Advisor

Here’s a note I recently received from Charles Brandes

“Today’s investing environment reminds me of thirty years ago, which only serves to reinforce my belief that investors are best off when they ignore the noise and confusion of short-term factors. The price of oil, the volatility of currencies, the level of interest rates, the fallout from sub-prime mortgages - these things have little impact on the performance of value portfolios over the long term. In fact, at the foundation of what we do is a belief in regression to the mean - that extreme highs and lows inevitably give way to historic averages over the long term. That is why we continue to stay true to our value investing philosophy and do not engage in currency hedging.”
- Charles Brandes, January 28, 2008

Rational

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