Hiring Stalin

We did an article a couple years ago that was a riff on the magazine articles “Celebrities, They’re Just Like Us!” featured in the grocery store check out lines.  We referenced how institutions often make the same stupid hiring and firing mistakes that individuals make – namely, chasing performance.  GMO has a nice summary at the end of the piece below on the topic.

My favorite example is the Buffett clone that would have underperformed the market 8 if the past 10 years, but still beat the S&P full cycle since 2000 by about 4 percentage points per year, placing it in the top 1% of all mutual funds.

One more – “Should Harvard Be Managed By A Robot”

Pic then download:



GMO Q Letter



Good investing,
Meb Faber