Fiduciary News

The root of these broader fiduciary concerns lies within the domain of compliance. Everything derives from what the regulators require, what any DOL audit might look at, and what might pique the interest of class-action attorneys.

There’s a fear that those rushing to promote their own PEPs are merely trying to return to the bundle service provider environment the industry evolved away from more than a decade ago. This makes due diligence all the more important.

The root of these broader fiduciary concerns lies within the domain of compliance. Everything derives from what the regulators require, what any DOL audit might look at, and what might pique the interest of class-action attorneys.

While this might ruffle the feathers of ESG activists, those responsible for the day-to-day work of picking stocks have the real-world experience to fully understand where Buffett is coming from.

We take a different approach by looking not too far back in the past. This avoids the “getting lost in the sauce of history” problem so many retrospectives have. It’s the opposite of the “recency” problem, where we place too much emphasis on that which lies closest to our memories. Often, instead, we’ll give more than proper weight to happenings in a distance that is rapidly losing relevance.