Gustavo Ballvé on January 18th, 2011
Food for thought, Home, Mental models, Portfolio Management, Risk management

Via The Guru Investor and Bill Nygren of Oakmark Funds just published his letter commenting on the 2000 decade, and it’s an interesting (and concise) exercise in expectations management. Leaving aside comments on his fund’s performance or musings on the “ideal” hurdle rate for a manager’s performance, the highlight is this: in the 40 quarters that made up the last decade, his flagship fund “only” beat the self-imposed hurdle (make money and beat the S&P 500 by more than 1%) in 8 of the 40 quarters – and still beat the S&P 500 by a large margin in the period. To finish first, first you must finish.

Plus: since Mr. Nygren highlighted one of the best Michael Jordan TV commercials ever, we’ve posted it here alongside other sports-related TV ads we think carry important messages for investing, working and – dare we say it – life in general.

Michael Jordan “Failure” ad (0:30 – with subtitles in Portuguese):

Michael Jordan “Maybe” ad (1:02 – with subtitles in Portuguese):

Lance Armstrong “What are you on” ad (0:32):

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