--- title: "Meaning & Key Takeaway of: The trouble with institutional investors…" description: "\"The trouble with institutional investors is that their performance is usually measured relative to their peer group and not by an absolute yardstick. T..." image: "https://sms4smile.com/quotes/i/af8/george-soros-1593_absolutes_the-trouble-with-institutional-investors_626030.jpg" --- # The trouble with institutional investors is that their… ![“The trouble with institutional investors is that their performance is usually measured relative to their peer group and not by an absolute yardstick. This makes them trend followers by definition.” quote by George Soros](https://sms4smile.com/quotes/i/af8/george-soros-1593_absolutes_the-trouble-with-institutional-investors_626030.jpg) [Download](https://sms4smile.com/quotes/i/af8/george-soros-1593_absolutes_the-trouble-with-institutional-investors_626030.jpg) [Open image](https://sms4smile.com/quotes/i/af8/george-soros-1593_absolutes_the-trouble-with-institutional-investors_626030.jpg) > “The trouble with institutional investors is that their performance is usually measured relative to their peer group and not by an absolute yardstick. This makes them trend followers by definition.” [George Soros](https://sms4smile.com/quotes/author/george-soros/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Institutional investors are judged by peers, so they chase trends instead of seeking absolute performance. **In simple terms:** Investors follow peers, not absolute goals. Key Takeaway Focus on absolute performance metrics. Themes finance investment behavioral economics Mood analytical critical strategic Type advisory analytical When to use this quote - portfolio management - fund selection - risk assessment - strategic planning Key Concepts relative performance trend following benchmarking Questions to Reflect On - How can investors set absolute performance goals? - What risks arise from trend‑following behavior? A Different Perspective May ignore unique opportunities by over‑relying on peer comparison. ★ ★ ★ ★ ★ No ratings yet [Absolutes](https://sms4smile.com/quotes/about/absolutes/) [Customer](https://sms4smile.com/quotes/about/customer/) [Followers](https://sms4smile.com/quotes/about/followers/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investors](https://sms4smile.com/quotes/about/investors/) [Peer group](https://sms4smile.com/quotes/about/peer-group/) [Performances](https://sms4smile.com/quotes/about/performances/) [Trends](https://sms4smile.com/quotes/about/trends/) ## Related quotes > [Being a CEO still means sitting across the table from big institutional investors and showing your leadership and having them believe in you.](https://sms4smile.com/quotes/christie-hefner/being-a-ceo-still-means-sitting-across-the-table-from-big/) [Christie Hefner](https://sms4smile.com/quotes/author/christie-hefner/) > [The commission of the investment sins listed above is not limited to 'the little guy.' Huge institutional investors, viewed as a group, have long…](https://sms4smile.com/quotes/warren-buffett/the-commission-of-the-investment-sins-listed-above-is-not-limited-to/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [There were never as many big businesses as people were piling money into in the late 90's or early 2000's. This is really a…](https://sms4smile.com/quotes/dave-mcclure/there-were-never-as-many-big-businesses-as-people-were-piling-money/) [Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/) > [It's no secret that big institutional investors have a lot of advantages on Wall Street. They get the first chance to buy hot initial…](https://sms4smile.com/quotes/alex-berenson/it-s-no-secret-that-big-institutional-investors-have-a-lot-of/) [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) > [“How can institutional investors hope to outperform the market... when, in effect, they are the market?”](https://sms4smile.com/quotes/charles-d-ellis/how-can-institutional-investors-hope-to-outperform-the-market-when-in/) Charles D. 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Swensen](https://sms4smile.com/quotes/author/david-f-swensen/) > [Individual and institutional investors alike frequently demonstrate an inability to make long-term investment decisions based on business fundamentals.](https://sms4smile.com/quotes/seth-klarman/individual-and-institutional-investors-alike-frequently-demonstrate/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Regulations for international accounting and funding will have to be examined to identify policies that inadvertently discourage institutional investors from putting their resources into…](https://sms4smile.com/quotes/jose-angel-gurria/regulations-for-international-accounting-and-funding-will-have-to-be/) [Jose Angel Gurria](https://sms4smile.com/quotes/author/jose-angel-gurria/) > [The great majority of men use their own short-sighted ideas as a yardstick for measuring the divine omnipotence.](https://sms4smile.com/quotes/therese-of-lisieux/the-great-majority-of-men-use-their-own-short-sighted-ideas-as-a/) [Therese of Lisieux](https://sms4smile.com/quotes/author/therese-of-lisieux/) > [There's always the tendency to transform the Church into an ethical agency, and of measuring the Church by the yardstick of social and cultural…](https://sms4smile.com/quotes/karl-lehmann/there-s-always-the-tendency-to-transform-the-church-into-an-ethical/) [Karl Lehmann](https://sms4smile.com/quotes/author/karl-lehmann/) > [If you are poor, shun association with him who measures men with the yardstick of riches.](https://sms4smile.com/quotes/khalil-gibran/if-you-are-poor-shun-association-with-him-who-measures-men-with-the/) [Khalil Gibran](https://sms4smile.com/quotes/author/khalil-gibran/) ## More by George Soros > [Merkel has realized that the euro is not working, but she cannot change the narrative she has created because that narrative has caught the…](https://sms4smile.com/quotes/george-soros/merkel-has-realized-that-the-euro-is-not-working-but-she-cannot/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't…](https://sms4smile.com/quotes/george-soros/markets-are-designed-to-allow-individuals-to-look-after-their-private/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [We must not forget; but we must forgive. Suffering often such compassion from the Jewish community. It was Jewish groups in the US who…](https://sms4smile.com/quotes/george-soros/we-must-not-forget-but-we-must-forgive-suffering-often-such/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [I very often used to get backaches due to the fact that I was wrong. 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We try to catch new trends early and in later stages we… ](https://sms4smile.com/quotes/george-soros/we-at-soros-fund-management-use-options-and-more-exotic-derivatives/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [“On the abstract level, I have turned the belief in my own fallibility into the cornerstone of an elaborate philosophy. On a personal level,…](https://sms4smile.com/quotes/george-soros/on-the-abstract-level-i-have-turned-the-belief-in-my-own-fallibility/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [The main difference between me and other people who have amassed this kind of money is that I am primarily interested in ideas, and…](https://sms4smile.com/quotes/george-soros/the-main-difference-between-me-and-other-people-who-have-amassed-this/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [By creating the European Central Bank, the member states exposed their own government bonds to the risk of default. Developed countries that issue bonds…](https://sms4smile.com/quotes/george-soros/by-creating-the-european-central-bank-the-member-states-exposed-their/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Every bubble has two components: something - some real trend, and a misconception about that trend.](https://sms4smile.com/quotes/george-soros/every-bubble-has-two-components-something-some-real-trend-and-a/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) [Explore all 225 George Soros quotes ](https://sms4smile.com/quotes/author/george-soros/) ## More Absolutes quotes > [At the centre of the human heart is the longing for an absolute good, a longing which is always there and is never appeased…](https://sms4smile.com/quotes/simone-weil/at-the-centre-of-the-human-heart-is-the-longing-for-an-absolute-good/) [Simone Weil](https://sms4smile.com/quotes/author/simone-weil/) > [There is no perfect justice, just as there is no absolute in ethics. 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