What is the meaning of Survivorship bias?

Usually pertaining to fund manager or individual investor performance. Suppose we examined the performance over the last ten years of a group of managers that exist today. This performance is biased upwards because we are only considering those that survived for 10 years. That is, some dropped out because of poor performance. Hence, in evaluating performance, one has to be careful to include both the current and the managers that dropped out of the sample due to poor performance.

3
 
|15 years ago|145 views|share |citing 
APABarry Goldsmith. (2010). survivorship bias. Retrieved September 29, 2026, from http://smartdefine.org/survivorship_bias/definitions/1164628
ChicagoBarry Goldsmith. 2010. "survivorship bias" http://smartdefine.org/survivorship_bias/definitions/1164628 (accessed September 29, 2026).
HarvardBarry Goldsmith 2010, survivorship bias, Smart Define, viewed 29 September, 2026, <http://smartdefine.org/survivorship_bias/definitions/1164628>.
MLABarry Goldsmith. "survivorship bias" 21 October 2010. Web. 29 September 2026. <http://smartdefine.org/survivorship_bias/definitions/1164628>