We can probably agree that on any given day, maybe 95% of all marketing/advertising/articles/commentary by talking heads on TV discussing the broad topic of investing, focus on "performance" or "returns". That is, where to invest now, today, in order to achieve returns beyond what the market freely provides. We listen intently as we search for the ever elusive "black box" or secret formula for investing.

Well, after 30 years of assisting successful individuals work towards financial freedom, I can attest that all of this emphasis on outperformance is misplaced. The entire search for the needle in the haystack is fruitless. The attached brief video interview of Professor Eugene Fama does a very good job explaining how difficult chasing performance can be based on the data. Yet, each and every day, most of the world does just that.  The "Wall Street" brokerage firms, banks and others involved in financial services use this never ending search for outperformance as the centerpiece of their marketing.

Our approach, of course, is very different. We seek to capture what the market provides mainly utilizing low cost institutional level funds. As Dr. Fama points out, that puts us ahead of about 97% of the others. So, what stands in the way? Why do many investors find it difficult to stay the course? Well, plainly put, it is mental. Our emotions push us to react and this often leads to poor decisions. We can't obtain the long-term returns provided by the capital markets if we panic out just at the wrong time (as many investors do, over and over again). Have you ever seen a print or TV ad where the financial firm talked about behavior instead of performance? Probably not, and that is the rub. The single most important aspect of real life financial outcomes (investor behavior) isn't even discussed. The irony is this is the only aspect that we can control.

What do you want to accomplish? What do you want to fix? What do you want to avoid? The answers to these provide the fuel for a better investment experience and better long-term outcomes.