Investing basics: how do you measure investment success?

Investors often review performance against a designated benchmark, but this can result in a biased comparison - so how should you determine investment success?

Dan Kemp 20 September, 2019 | 1:12AM

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When you invest, it is important to remember that you are making a short-term sacrifice for longer-term gain. In most instances, the objective is financial prosperity, security, or the attainment of a goal, which are all typically longer-term in nature.

Primarily, investors often spend their time reviewing performance against a designated benchmark, but this can result in a biased comparison, where the wrong things are compared to each other over the wrong timeframe.

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About Author

Dan Kemp

Dan Kemp  Dan Kemp is Chief Investment Officer, Morningstar Investment Management EMEA.