Countless performance-chasing parades have come and gone, with one thing in common: By trying to concentrate in a hot trend once it’s already popular, you’re riding a massive wave that could subside at any time.
In relatively efficient markets, even the experts can’t know what future pricing will be. So, trading based on forecasts and predictions is a coin flip, at best; the outcome is based on luck vs. skill.
An investment philosophy is a set of principles or guidelines to steer the decision-making process and stipulate how your money will be managed across both good and challenging times.
We believe that investment noise is the greatest obstacle most investors face and the most essential investment skill you can develop is the ability to recognize and tune out four sources of investment noise: the media, experts, friends & family, and yourself.