10 Things All Investors Need To Know

All successful investors are goal-oriented and planning driven.

People with a plan, a strategy and an investment policy succeed financially. Those chasing performance as a substitute for planning rarely succeed. Here are the 10 things investors need to know to be successful.

  • Asset allocation is responsible for over 90% of the variability of returns over time.” Source: Ibbotson and Brinson Studies
  • “Market timing does not work.” – Peter Lynch, One up on Wall Street. Market timing is an attempt to alter the mix of assets based on a prediction of the future. Because the future is random and unpredictable, market timing is a flawed idea and strategy. As such, we will never attempt to market time.
  • Investor behavior is the determining factor in long term equity returns. For this reason, we only work with investors who are committed to advancing their own fiscal literacy by attending our investment forums and by engaging in our process.
  • Academic studies demonstrate time after time, that most professional full time money managers fail to meet their benchmark returns because they cannot consistently pick the best stocks and avoid the losers. As such, portfolios designed to capture market returns are a more prudent path to wealth creation than stock picking.
  • Use low-cost, structured portfolios and rebalance regularly, so as to implement the golden rule of investing: buying low and selling high.
  • Eliminate conflicts of interest

  • Free markets work – Capitalism and equities are the greatest long term wealth creation tools known to mankind.
  • Stock picking, market timing and track record investing are forms of speculating and gambling, and are destructive to long-term investing goals.
  • Implement academically sound, Nobel Prize winning modern portfolio theory to achieve market returns consonant with an investor’s risk profile.
  • Successfully answering “The 20 Must Answer Questions for Your Journey Toward Peace of Mind” is the best way for investors to find true comfort with their money.