Investment Approach

Core Principles of Investing

Our investment philosophy and process is firmly rooted in decades of academic research and empirical data which has borne the following fundamental principles:

Markets Work – Capital markets are not perfect and prices are not always right, but markets are so competitive that it is unlikely an investor can systematically profit from mistakes in the market at the expense of other investors.

Active Management Generally Fails – There have been (and will be) a limited number of stock-pickers and market-timers who outperform the market, but no more than you would expect by chance, and it is very difficult to identify them in advance.

There Is No Crystal Ball . . . and You Don’t Need One – At the root of all forms of active management is some sort of forecast, but the future is by definition unknowable. Although no one can predict the future, you don’t need to in order to have a successful investment experience – with capitalism, there is a positive expected return on capital.

Diversification Is Key – The closest thing there is in investing to a free lunch, proper diversification increases the likelihood of earning expected returns and may reduce risk by eliminating risks you are not paid for taking.

Bring Discipline to the Process – In the face of volatile financial markets, investors must guard against destructive human behavioral biases and adhere to a long-term investment strategy in order to have a successful investment experience that captures capital market rates of return.