It is crucial to have, and maintain, a sound process….

Investor and Money Manager, Seth Klarman said in a 2009 interview…..

It’s so easy for one’s investment process to break down — and process is everything in investment firms.

And today, many firms have a broken process. When investors worry about what a client will think rather than what they themselves think, the process is bad. When an investor is worried about their firm’s viability, about constant redemptions, about avoiding loss to the exclusion of finding a legitimate opportunity, the process will fail.

When one’s time orientation becomes absurdly short-term, the process is compromised. When tempers flare, when recriminations abound, when second-guessing proliferates, the process cannot work properly. When investors worry about the good of the firm or its publicly-traded share price rather than the long-term best interest of the clients, the process is corrupted.

When the process is broken, you can’t invest well. It’s hard enough to invest well when the process is good. So it’s crucial to have a sound process that will enable you to perform this difficult task with intellectual honesty, rigour, creativity and integrity.

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