Download This PaperPatience is a Virtue - In Value Investing
22 Pages Posted: 23 Mar 2018 Last revised: 1 Apr 2018
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: 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
Norwegian School of Economics and Business Administration (NHH)
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Swiss Finance Institute
c/o University of Geneva
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Switzerland
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