Mutual Fund Survivorship: The Revenge Of Abraham Wald

Mutual Fund Survivorship: The Revenge Of Abraham Wald by Tom Macpherson, Dorfman Value Investments

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The story of Abraham Wald and the study of WWII bomber casualties is one of the more enlightening stories from the field of operational research. During the early days of the Allied strategic bombing campaign the amount of bombers not returning from their missions reached an unacceptable rate. In a desire to find out why, the USAAF completed a study on where the damage was taking place and where additional armor could be placed to make each bomber safer. Here Wald enters our story. Taking one look at the methodology and findings, Abraham Wald told the team they were looking at...