What is crucial for effective performance measurement?

For effective performance measurement, the availability of reliable and timely data is essential. Accurate data serves as the foundation for evaluating an investment's performance. It allows for precise comparisons against benchmarks, supports the identification of trends, and facilitates informed decision-making. Without reliable data, evaluations may be skewed or misleading, which can lead to poor investment choices.

Timeliness is equally important because outdated information can misrepresent the current market conditions, potentially resulting in missed opportunities or inappropriate responses to market shifts. Thus, having access to reliable and timely data ensures that performance measurement reflects true performance, allowing stakeholders to make informed strategic decisions.

While high-frequency trading data may provide insights for specific trading strategies, it doesn't comprehensively support general performance evaluation across different investment types or long-term strategies. Emotional investor feedback can offer perspectives but lacks objectivity and quantifiable metrics that are crucial for measuring performance accurately. The use of investment software is beneficial but is dependent on the quality of the data inputted; thus, its effectiveness is secondary to the foundational need for reliable and timely data.