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It is better to be approximately right than precisely wrong.
- Warren Buffett
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The Best Investment Philosophy
David Booth, co-founder of Dimensional Fund Advisors likes to say that "the most important aspect of any investment philosophy is to have one." When we look back over the most recent economic downturn (along with the others that we have seen in 28 years in business), the simple wisdom of these words rings true.
Quite often, the media adopt a siege mentality and prognosticate that "the end is near". That certainly was true of the late 08-early 09 market meltdown where stories generally said that "this time is different." This time or the time before or the time before that...is never different. The context and the exact ordering of events may be but the outcome (the economy and indeed the financial markets recover) is always the same.
The philosophy that we follow emphasizes that it is better to let markets work for you instead of trying to constantly outguess them.
Maintaining discipline in bad times is difficult but having a grounded, sound philosophy makes it much easier. It keeps us (and hopefully you) calm so that we can make good decisions. Without a coherent system and philosophy it is far easier to panic.
- James E. Wilson, CFP® My Blog
 In Barriers to Financial Security, we discuss the very real cost of investor behavior. Previous chapters introduced the series and the importance of investor behavior. The second and third chapters provide a historical perspective for investors. Chapter three is available here. |
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WealthRx® is J.E. Wilson's unique wealth management process, designed with successful physicians in mind. Learn more. Contact 
