Pimco's Steady Mediocrity Wins

Morgan Housel shares how Pimco achieved long-term success through consistent, moderate performance.

"Pimco, the big bond fund, had this phrase that I love - they called it 'strategic mediocrity.' In any given year they were never going to be in the top half against their peers, but in every decade they'd always be in the top decile because the peers that beat them in any given year get washed out.

I think that applies to a lot of things - it applies to businesses, relationships, and marriages. You don't need to be a superhero if you're just good for a long period of time. That's how compounding works its magic."