RT Journal Article
SR Electronic
T1 Is Investing a Science?
JF The Journal of Investing
FD Institutional Investor Journals
SP 39
OP 45
DO 10.3905/joi.2015.24.3.039
VO 24
IS 3
A1 Andrew L. Berkin
A1 Larry E. Swedroe
YR 2015
UL https://pm-research.com/content/24/3/39.abstract
AB Although investors seek greater certainty in their results, investment returns can fluctuate dramatically. To help increase investors’ confidence that their strategy will achieve their goals, investors should consider utilizing the scientific method. We first describe the scientific method and then discuss its applications to investing, providing an explicit example with value investing. Finally, we discuss how to reduce uncertainty, giving similarities and differences between science and investing.TOPICS: Fundamental equity analysis, portfolio theory, portfolio construction