What's Critical to Investment Performance - Having a Process
To be a successful investor you must have a solid process. Investing should not be guess work!
You see this disclaimer everywhere, "Past performance is no guarantee of future results." It's true past performance has no predictive value, yet advisors and investors use it to make investment decisions. I guess it's just how investors are told by Wall Street in what to believe, but is that right? NO!
So what can you use? A method a little more subjective and not as straight forward is looking into the manager's investment process. How does he or she go about making selections and do they stick with their method or do they drift. This can be a very good method for investors selecting a manager.
I once played golf with a Hall of Fame LPGA golfer and at the end of the round I told her she just broke the course record by shooting 68. She told me she doesn't really think about her score, if fact she told me she doesn't pay attention to individual hole scores. She concentrates on every swing and she knows if she stays with her process the performance will be there.
At Teach Wealth Management, Inc. we have a process for investing that is based on 2 Nobel Prize winning theories in economics. Decades of research have culminated in an academic process of asset allocation geared to the clients risk tolerances. We set up their own investment policy statement to guide their investmests the way they want. We invest in over 13,000 stocks and bonds in 19 asset categories and in 45 countries. Our clients are globally diversified. With this diversification, we can help reduce risk, costs and volatility. This is not guess work or a prediction by some self-proclaimed guru.
If you'd like to see just how diversified you are now, let me run a Portfolio MRI, an in-depth look into every aspect of your portfolio. Call me at 772-419-2008 and also ask for your FREE "Investor Awareness Guide." Remember "Past performance is no guarantee of future results."