While most of the investment world bases their decisions on the myths of stock picking, market timing, and track-record investing, we base our strategies on what the evidence, driven by the scientific method, leads us to. Since Evidence-based investing is not based on speculation but instead on tested and proven results, there is a measured certainty that can be expected.
Our type of investing is not “in a vacuum” and requires an approach that combines the best external evidence weighed against personal experience and choice. Having a firm belief structure when it comes to the how and why we invest is critical. It helps us to remain disciplined in the calm and the chaos of global markets. These beliefs undergird our Evidence Based approach and our investment philosophy.
• Invest in the entire market – don’t try to beat it
• Costs matter, so keep them low
Diversification is Key
• Diversify across broad asset classes
• Diversify within broad asset classes
• Invest in many different names
• Invest in short-term, high quality fixed income
Risk & Return Go Hand in Hand
• Take investment risks worth taking
o Investing in stocks, small companies, value companies
• Create a thoughtful portfolio structure as it is the key determining factor of investment results
• Develop a plan that can be adhered to without anxiety in good and bad markets
• Review regularly