The downside to this method is it isn't
a good guide to future performance.
The letter says that the grades obtained provide
a better guide to future performance of students as Cambridge undergraduates than other methods of selection, such as GCSE results — which are «nowhere near as reliable» - or aptitude tests.
Not exact matches
Efficient diversification will not be enough
to earn
good returns; even very
well established track records will provide a less reliable
guide to future performance; and bond managers will probably have
to stray far from their comfort zone
to deliver even modestly positive real returns.
a. Preamble — The individual investor has been reaching for yield, unwisely using past
performance as a
guide to future success, and therefore believing that bonds are the
best investment for 2013.