Patience is a Virtue - In Value Investing

22 Pages Posted: 23 Mar 2018 Last revised: 2 Apr 2018

Thorsten Hens

University of Zurich - Department of Banking and Finance; Norwegian School of Economics and Business Administration (NHH); Swiss Finance Institute (Zurich Center); Swiss Finance Institute

Klaus Reiner Schenk-Hoppé

University of Manchester - Department of Economics; Norwegian School of Economics (NHH) - Department of Finance

Date Written: March 21, 2018

Abstract

This note illustrates a simple but important insight for financial investment. In a heterogeneous agent-based evolutionary finance market model with long-lived assets, markets are stable if clients of fundamental ('value') investment funds are more patient than clients of other funds.

Keywords: Financial market stability; delegated fund management; investor patience; agent-based modeling; evolutionary finance

JEL Classification: D53; G18; C63

Suggested Citation

Hens, Thorsten and Schenk-Hoppé, Klaus Reiner, Patience is a Virtue - In Value Investing (March 21, 2018). Swiss Finance Institute Research Paper No. 18-26. Available at SSRN: https://ssrn.com/abstract=3146848 or http://dx.doi.org/10.2139/ssrn.3146848

Thorsten Hens (Contact Author)

University of Zurich - Department of Banking and Finance ( email )

Plattenstrasse 32
Zurich, 8032
Switzerland
+41-44 634 37 06 (Phone)

Norwegian School of Economics and Business Administration (NHH)

Helleveien 30
Bergen, 5045
Norway

Swiss Finance Institute (Zurich Center)

c/o University of Geneve
40, Bd du Pont-d'Arve
1211 Geneva, CH-6900
Switzerland

Swiss Finance Institute

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

Klaus Reiner Schenk-Hoppé

University of Manchester - Department of Economics ( email )

Arthur Lewis Building
Oxford Road
Manchester, M13 9PL
United Kingdom

Norwegian School of Economics (NHH) - Department of Finance ( email )

Helleveien 30
N-5045 Bergen
Norway

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