Why Most Investors Would Fire God as Their Investment Advisor – The Challenge of Long-Term Investing
- Carson McLean, CFP
- May 22
- 1 min read
What the “God Portfolio” Teaches Us About Investing
One of my all-time favorite classic articles is "Even God Would Get Fired as an Active Investor" by Wes Gray, founder of Alpha Architect. It’s a clever and thought-provoking piece that highlights a crucial truth about investing: even the best strategies will experience volatility.
Wes imagines a “God Portfolio”—a theoretically perfect strategy, wielded with flawless foresight. Naturally, God would generate jaw-dropping long-term returns. But here’s the twist: even this portfolio would endure severe drawdowns along the way. Losses significant enough that most investors would fire “God” as their advisor, unable to stomach the short-term pain.
This isn’t just a fun thought experiment. It’s a reminder that volatility and drawdowns are inseparable from investing, even if you had perfect information. The real challenge for investors isn’t finding the “best” strategy, but sticking with it when it’s uncomfortable.
Why Sticking With a Strategy Is Harder Than It Looks
I see this pattern all the time: even sophisticated investors get anxious during market swings, missing out on winners, and start to question otherwise sound strategies. That’s why understanding your own emotional reactions is just as important as picking the right portfolio.
The key takeaway? Emotional responses to short-term trends often cause investors to abandon good strategies at precisely the wrong time. Wes Gray’s article is a must-read if you want to understand the real risks of long-term investing, and what it really takes to stay the course.
