Patience is a Virtue - In Value Investing
22 Pages Posted: 23 Mar 2018 Last revised: 2 Apr 2018
Date Written: March 21, 2018
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