How Investing Success is Different
in almost every endeavor, hard work, savvy decision-making and risk-taking is rewarded - often handsomely.
Investing however is different. Very few comprehend this difference. They actively buy and sell individual securities with the belief that they can outsmart the market. Quite often they do not measure their success at all or subjectively and believe they are "winning".
Rarely can an individual or system exceed the market return - and here's the rub: these occasional winners cannot be identified in advance. 60-90% of the time, those that try to achieve greater than market rates of return fall short and often fall short by very large margins. On average not just less than 50/50 odds, but far less. It's tragic and unnecessary.
Does this sound like you? It's never too late to step out of this cycle.
 | | Charles Ellis: Why is stock picking like gambling? |
In the 60 second video above, renowned Yale economist Charles Ellis describes how the 'science' of picking stocks is about as precise as gambling in a casino. You may sometimes come out on top but, most of the time, you will lose.
"Prudence" in investing sounds boring. "Passive" investing sounds like you're not trying hard enough.
Investing is different: prudence and passive are the sweet words of SUCCESS!
At the video below is a 4-minute video with more in depth insights on investing (passive approach) and speculating (active approach). Several industry icons are interviewed.
 | | Investing v. Speculating |
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What to Do Next
The most important first step is to understand what is most important to you and establish goals in alignment. Then choose someone that can bring a team of independent experts together and assemble the advice (prioritized in your best interests) to make it happen. That said, it is completely appropriate to choose investing as the first topic. We regularly analyze folk's current investment strategy with nothing expected in return. (We'll analyze other aspects of your strategy if you wish.) We look at: - Overall Performance (vs. benchmarks & our model portfolios)
- Portfolio Design
- Diversification
- Fees & Expenses
Give us a call. 760-804-0910 |
