Shlomo Benartzi, a household behavioral-finance specialist and professor at the UCLA, Anderson School of Management has used the term “Ulysses Contract.” as a means of keeping investors focused.
As you may have learned, the Ulysses of ancient Greek literature had resisted the Sirens’ song to avoid shipwreck, by having himself tied to his ship. In the same way, individuals could be under some form of voluntary contract with their advisers, not to act unwisely under outside pressure, whenever volatile and erratic events occur.
I have been a researcher and student of the importance of investing discipline for several decades. I have found that discipline is far more essential to investment success than strategy itself. I have investigated about 1,600 strategies, along with their pros and cons. (See the Earl J. Weinreb NewsHole® comments.)
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