Premium
Patience Is a Virtue: In Value Investing *
Author(s) -
Hens Thorsten,
SchenkHoppé Klaus R.
Publication year - 2020
Publication title -
international review of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.489
H-Index - 18
eISSN - 1468-2443
pISSN - 1369-412X
DOI - 10.1111/irfi.12251
Subject(s) - patience , investment (military) , business , value (mathematics) , virtue , simple (philosophy) , financial market , economics , financial economics , bond , finance , microeconomics , actuarial science , theology , philosophy , epistemology , machine learning , politics , political science , computer science , law
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.