108 THE INVESTMENT TEAM
slightly, which means that it has beaten 90 percent of all domestic
equity funds. In so doing, it received Morningstar’s highest rating
of five stars.
Another dolphin strategy is investing in diversity. Dolphins like
the people side of business and like to invest in companies that are
compassionate and progressive in their treatment of employees.
Hence, diversity-friendly companies are favorites of dolphins—and
they too have been outperforming the market. Fortune magazine
reports that “companies that pursue diversity outperform the S&P
500 ” (July 19, 1999).
Given the success of these dolphin strategies, what are the
possible pitfalls for dolphin investors? They are the most idealistic,
and therefore most gullible, of all the temperaments. They tend to
trust people too quickly, which leaves them vulnerable to ripoffs.
Also, they tend to lack the objectivity that would allow them to see
past emotional issues in some investments. An example? Some
dolphins might object to investing in a company that is downsizing,
arguing that its poor treatment of employees disqualifies it from
consideration.
Figure 12.1 summarizes the financial profile of each of the four
temperaments. Readers who find this particularly interesting can
explore it in more depth in a book called The Social Meaning of
Money and Property by Kenneth Doyle (Sage Publications 1999).
Chapter 13 examines how this material can be useful with your
financial clients.08-13 ware 108 1/19/01, 1:11 PM