, Columnist
Stock-Pickers Don’t Know How to Sell
They actually do OK figuring out what to buy. But they need to do a better job unloading stuff.
A better way to sell.
Photographer: Charlie Crowhurst/Getty Images EuropeThis article is for subscribers only.
Money managers know how to buy. What they need to do is to learn how to sell. Most of them are terrible at it.
That is the stunning conclusion of a research paper published earlier this month. If you manage money — or have any of your own invested in managed accounts — it is required reading. It goes far beyond the usual underperformance critiques of active management in an attempt to decipher why fund managers are so bad at this critical aspect of investing.