What I Know (That You Should, Too)
Many of our clients frequently ask about what are the core beliefs about investment management that guide our recommendations. This is a very abbreviated version of what we believe, but we thought you might find it helpful in understanding a little about how and why we make the recommendations that we do.
Behavior, Not Performance
Investor behavior, not investment performance, is the largest determinant of long-term success, so focus on what you can control (which is your behavior and wherewithal) and forget about what you can’t (which is everything else).
Reason, Not Emotion
Greed and fear are poor counselors, so let reason, not emotion, be your guide.
Markets, Not Managers
Capital Markets, not capital managers, make money, so pursue the reality of long-term capital market returns, not the illusion of short-term manager-driven performance.
Decades, Not Years
Live for five more years and money is not likely to be your big problem. Live for twenty-five more years and it may be, so think long-term, not short term; in decades, not years.
Signal, Not Noise
In an ocean of information, signal and noise (or information that matters, and that which doesn’t) are easily confused, so focus on the few things that matter, not the many that don’t.