Guiding Principles

​

Nobody can predict the future.

Investing decisions are best guided by research and historical context, but there are no guarantees. An analyst’s ability to successfully pick individual stocks is similar to their ability to predict the outcome of a coin flip - mostly random. Our emotions are also often misleading, with fear and lack of confidence stifling our ability to make informed decisions. So I avoid stock picking, preferring low-cost diversification of investments with the desire to achieve long term growth.

 

Timing is important.

I also do not try to time the market for the best times to buy and sell. If you want to mimic what has driven the most growth in the past, the best time to invest is today (not waiting). The second best is to start investing a little now and incrementally invest more over time - dollar cost averaging. The best time to sell requires a bit more nuance and consideration, but that nuance is based on personal needs, not an ability to identify the peak of the market (Schwab). 

 

Fees are the enemy of growth.

Since we are unlikely to consistently exceed the market returns, we are best served by investing in low cost funds with diverse holdings for long-term growth. The lower the fee, the more likely we are to outperform other investment options. Fees paid to advisors, while intended to increase overall returns, also eat away at portfolio values and have diminishing return beyond a baseline of analysis and recommendation. So I believe payments to an advisor should be limited to the incremental value added.

 

(Nearly) Everyone is capable of managing their own finances.

I’d love to work with you long-term, but this might not be in everyone’s best interest. If you would like to learn about investing and follow what I show you, I would be happy if you no longer need me after a few years and never need an investment advisor again. If I am successful, you’ll no longer need my advice, allowing you to manage your own finances in the future.