As we’ve all been impacted in some way by COVID-19, this brief, 3-minute video discusses some very important principles and lessons we should always keep in mind as wise, successful investors.
One of the biggest mistakes investors regularly make is the tendency to extrapolate what has recently been taking place in the financial markets into the future. In the world of Behavioral Finance, this is commonly referred to as recency bias.
In this brief, 3-minute video, we take a closer look at this and provide you with some practical guidance that can help you become an even better investor.
Although it continues to be clearly documented by ongoing academic research that active managers who attempt to outperform benchmarks via stock selection and/or market timing consistently fail, this fool’s errand continues to persist because of the high fees generated by doing so. In this brief, 3-minute video, my colleague and friend Robin Powell, highlights some of the ongoing hurdles these speculators face because of their long-shot bets.
Most individuals focus too much on the “here and now” vs. the long road ahead. In the world of investing, this can lead to very poor, reactionary decisions. In this feature of our video blog, we take a look into a very common bias in the field of behavioral science. It’s our sincere hope that this will help you to stay committed to your financial plan over the years ahead.
Successful investing should never be exciting, but rather quite boring. We all have heard the fable of the tortoise and the hare, and we all know who eventually won. In the world of prudent investing, success most often favors those who embrace patience, and yes, boredom. Excitement comes from dangerous speculation and gambling. Caveat emptor!
In this brief yet very insightful video blog, we share how the country of Norway emulates the very same principles in the management of their government's pension fund as we do here at ISI. Interestingly, more and more institutional funds throughout the world have begun, and continue, to migrate over to this evidence-based approach to investing.
As an experienced financial advisor of over 33 years, one of the things I regularly remind clients is that as a fee-only financial advisor I have a moral and legal fiduciary responsibility to provide advice and guidance that I believe is always in their best interest. At times, this may even mean some “tough love” if it requires challenging a client’s well-intentioned desires or actions.
Here at ISI, we are extremely fortunate to be able to utilize the institutional management of Dimensional Fund Advisors’ mutual funds in our clients’ portfolios. Unlike traditional retail active managed and generic index funds, Dimensional employs strategic factors such as company size, value, and profitability in an effort to outperform broad market indexes. And since their inception many years ago, they have consistently delivered.
In this brief, 3-minute video, you’ll briefly be introduced to this special and respected strategy.