Investors have a tendency to look at an investment’s past returns to arrive at investment decision. In most aspects of our life we look at the past performance of many things to gauge how they might perform in the future. For instance, we buy Hondas and Toyotas because of their reliable histories. Many colleges admit students based on their high school grades. However in contrast, when it comes to investment, past performance is just one of the many factors required to arrive at making prudent investment decisions.