- A rational investor lacks emotions around their investments.
- This increases the odds that they will walk away from them when the stocks dip
- A reasonable investor has a higher chance of sticking with the falling stocks since they are more attached to their imperfect strategies
Commitment is correlated to performance
- There are few financial variables more correlated to performance than commitment to a strategy during its lean years—both the amount of performance and the odds of capturing it over a given period of time.