episode: 13

EBI – Principle #1: Invest in Asset Classes

October 8, 2020

listen now

About This Episode

One of the challenges Canadian investors face is choosing between the sheer number of choices of types, styles, and strategies for investing that are available. To help you to cut through the noise and overwhelm, we’re starting this series on the best investment philosophy for investors, evidence-based investing.

An evidence-based strategy is a scientific approach to investing where investment decisions are based on facts and research on what’s worked for investors over the long-term. Over the next couple of episodes, we’ll be going through the four main principles of evidence-based investing every empowered investor needs to know, starting today with investing in asset classes.

On this episode, Ruben and I talk about the role of evidence-based for the empowered investor, how evidence-based investing is different from alternative approaches like market timing and stock picking, the benefits of an evidence-based investing approach, the four traditional asset classes for investment portfolios, why you should embrace the average advantage, and so much more!

Thank you for listening!

Key Topics:

  • The role of evidence-based investing for the empowered investor (1:53)
  • How this approach reduces overwhelm for Canadian investors (3:00)
  • What is evidence-based investing? (3:48)
  • The four principles of evidence-based investing (4:53)
  • Two popular alternative investment approaches (5:56)
  • The problem with making accurate market predictions (6:34)
  • How market predictions have played out during the current pandemic (7:41)
  • Why I don’t consider a market-timing approach to be a philosophy (9:08)
  • What is stock picking? (9:43)
  • What the evolution of Apple stock shows us about the risks of stock picking (10:22)
  • The difficulty in picking winning stocks (13:16)
  • Defining asset classes (14:26)
  • The four traditional asset classes for investment portfolios (15:42)
  • Breaking down the main asset classes (16:39)
  • Examples of alternative asset classes (17:49)
  • Why we don’t consider hedge funds to be an asset class (18:26)
  • Advantages of asset class investing over market timing and stock prediction approaches (19:42)
  • Making decisions based on asset allocation (20:36)
  • Embracing the average advantage (22:36)
  • Why some investors don’t use an evidence-based investment approach (24:05)
  • Key takeaways about asset class investing (25:44)
  • The power of patience (26:23)
  • And much more!

Meet your hosts

Keith Matthews

Keith Matthews

Partner & Portfolio Manager

linkedin  email  phone

Ruben Antoine

Ruben Antoine

Portfolio Manager

linkedin  email  phone

Marcelo Taboada

Marcelo Taboada

Associate Portfolio Manager

linkedin  email  phone

Thanks for Listening!

Be sure to subscribe on AppleGoogleSpotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com or 514-695-0096 ext.112

Follow Tulett, Matthews & Associates on social media on LinkedInFacebook, and more!

Follow The Empowered Investor on FacebookLinkedIn, and Instagram

Related Episodes

How Much is Financial Advice Worth?
How Much is Financial Advice Worth?

Can you quantify the value of financial advice? Dive into the intricate relationship between financial advice and investment success, featuring the insightful expertise of Emile Bouchard from Vanguard.

read more
Book Review: Same as Ever, by Morgan Housel
Book Review: Same as Ever, by Morgan Housel

Are we learning from history or repeating the same patterns in different contexts? How does understanding human behavior enhance our investment strategies? Can the past unlock secrets for future financial success?

read more

Stay on top of your financial education

Subcribe and follow to get updates on important wealth management topics.

Share | Partager

We appreciate social shares to help spread our messages! | Nous apprécions les partages sur les médias sociaux pour aider à diffuser nos messages!