Charles Goodhart is an Economics Professor from the London School of Economics. He said that “Any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes” One interpretation is that when a measurement becomes a target, it ceases to be a good measure. 

I was expecting to lose money when I ploughed my trainer’s fees into the portfolio created by my third batch of students. After all, the Capricorn effect is long over and REITs have already completed a fairly good run in the markets.

Furthermore, the worse decision we made as a class was to keep First Reit in our portfolio. It subsequently lost me about 7+% over the span of less than a month, likely due to the perceived problems from its sponsors. Interestingly, the class kept it in the portfolio even when their senior batch happily excluded it from the final list of