Our Investment Philosophy is based on the following academically-tested premises:
Investors face two primary risks: staying ahead of inflation while managing risk (volatility). Most investors concern themselves with one, at the expense of the other.
The number of investors who consistently beat the market is very small; smaller even than luck would suggest.
A track record of from 30 to 100 years is required to determine whether performance is due to luck or skill.
Beating the market is unnecessary; a well-diversified portfolio has provided more than adequate returns to meet reasonable financial goals.
Past performance is no indication of future results.
Investment costs are an indication of future results; the lower the better.
A typical stock exhibits 5-10 times the volatility of a broad-based index; such risk is speculative in nature and is not rewarded by the market.
Combining "low correlation" asset classes using broad-based, low cost exchange-traded index funds (ETFs) allows an investor to increase return and decrease risk while minimizing costs, income taxes, and effort.
