Time for my first thread of 2021: Today, How I Measure Myself: a 2020 Report!

With some related thoughts on evaluating management and picking investment managers.

Important note: underlying everything that follows is integrity and trust. Without that, nothing matters.

1) Day to Day: Business Basics

Did I “keep the trains running on time” in 2020? Yes

Do I know how I measure my performance? Yes

How was my performance? Satisfactory

Overall grade: A- (I wasn’t aggressive enough in the markets at the bottom)

Management Thought: Passion not Emotion

Emotional investment decisions tend to be bad investment decisions, but passion keeps somebody in the game - especially when things get difficult

Equally true for investment managers and company management.

Don’t want:

Management Thought 2: Do managers clearly communicate how they are measured and how they evaluate others?

For example, any CEO’s (or investors) job is to allocate capital. Do they measure their effectiveness at allocating capital? How?

Don’t want: “Just need more money”

2) Management Skill: Strategy and Tactics

Few are excellent at both. For example, asset allocation vs trading. Or looking at different asset classes.

Am I humble enough to admit where my circle of competence ends? Do I partner/hire - especially outside that?

2020 grade: A