The Misfit Benchmark, Audit, and Revaluation

Been a while since I wrote one of these, but have been exploring a lot of thoughts during the quiet period. One that I've learned to articulate enough to at least occasionally share, is this concept of the Misfit Benchmark and what I think of as an audit and revaluation of our life.

The story I usually tell when I'm talking through it with someone, is about how I came across the concept in Level III of the CFA curriculum. The idea is called the Misfit Benchmark. In concept, it's the builds on that idea that a portfolio manager compares the performance of his fund, to a particular benchmark or index. If that manager picks the wrong benchmark i.e. one that doesn't truly reflect the composition of his fund, then the given relative performance is "misfit" in that it doesn't give an accurate measure of relative performance.

Lights go off in my head...we do this in life. We are born and raised with thoughts, ideas, and experiences that frame our "default" benchmark. Sometimes, the framing process aligns great. Sometimes, for various reasons, it may not. Either way...the idea of recognizing that we have a default benchmark...one that was formed around us rather that chosen by us...that we then compare ourselves too. To varying degrees and interpretations. By recognizing it's there, allows us to audit what it's comprised of. And whether what's in it, is what we want to be in it. Our measures, or signals, are they really ours? Mine?

Then we can go through a process of revaluation of who we are and who we want to be, to reconstitute our benchmark. Or reconstitute our life...how we're living. I always end up thinking about cognitive dissonance here.

The revaluation is where I've been for about the last year. And it's been a year ha. But I think I feel comfortable with the pillars of what I want to constitute my benchmark, what I hold myself accountable to. And how I'll reflect on my life as life drifts into eternity. It'll evolve, I'm sure. As it should. I think Bayesian statistics here...somehow it's connected haha

And last thought here, is that it's okay if we recognize that we need to change either/both of our benchmark (values) and our fund (life).