Pitfalls Of Comparison Which Investors Fail To Understand

How investors compare is the topic of Michael J. Mauboussin’s latest research offering. Comparing is a vital part of investing and life. Most investors will, at some point, have had to choose between two different companies or funds by comparison. Comparing a business to the rest of the sector is another possible scenario. In the perfect world, these comparisons would be completely objective, and a conclusion would emerge based entirely on the figures presented. However, the world is not ideal, and there will always be outside factors that impact your decision. [singleton] We must also make comparisons outside of the investing world….