Josh Scandlen Podcast

Many professional money managers will provide a benchmark to their clients as a way to measure their performance.  This is certainly better than the old days when an investor had no clue as how well his/her money manager was doing.  The problem with this new approach though is that the benchmark is basically meaningless.  How is the benchmark determined, first of all? By the folks you are paying to manage your money? doesn't that seem a bit disingenuous at the outset? Think about it like this. I'm a professional football coach. The owner wants to know how I did  last year. Thankfully, I get to pick the benchmark to compare my performance.  So, what do you think I'll use? The Cleveland Browns of course! The investment world is not that far removed from this type of performance comparison.  THEY choose the benchmark.  Yeah, it will be more legit than my football analogy above.  But still, how do they get their benchmark? Is the benchmark something I can invest in di