Wall Street and the popular press have trained investors to speculate in pursuit of unrealistic returns that occasionally materialize over short periods of time but have not been demonstrated as sustainable.
Academic research provides us with Core Beliefs which we apply to achieve Risk Managed Returns:
Markets Are Efficient
”Markets work and, for investment purposes, are fairly priced” – Eugene F. Fama, University of Chicago 1990; Paul Samuelson, MIT, Nobel Prize Economics 1970.
Risk And Return Are Inextricably Related
”Priced risk factors determine expected return” – James Tobin, Nobel Prize Economics 1981.
Diversification Is Key
”Concentrated investments add risk with no additional expected return” – Harry Markowitz, Nobel Prize Economics 1990.
Structure Explains Performance
”Asset allocation principally determines results in a broadly diversified portfolio” – Gary Brinson, Randolph Hood, Gilbert Beebower 1995; Roger Ibbotson, Paul Kaplan 2000.
An efficient application of these principles has been demonstrated to produce returns that most investors view as Highly Satisfactory!
We manage our own money based on these principles and offer the same Methodology to our clients.