Luck vs. Skill

Kurt Fritz

Market Minute

September 19, 2018

As Kurt taught at the recent Pacific Coast Banking School, he was reminded of a timeless truth he discussed in 2012: as a federal judge ruled that year, there are some activities that require pure luck, some that require more luck than skill, some that require more skill than luck, and some that require pure skill. As Kurt observes, balance sheet and portfolio management decisions are too often driven by luck when they should be driven by skill. He lays out the steps institutions can take to ensure they make their enterprise decisions with skill rather than luck.

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