Ten Big Ideas We Believe In

The below comes from my quarterly letter to clients that just went out this morning.

Our strategic asset allocation strategies were designed based on our core philosophy:

  1. markets work
  2. investors are compensated for the risks they bear
  3. some risks pay better than others
  4. prices contain information
  5. performance is mean-reverting
  6. the future is unknowable
  7. the past is a good guide
  8. compounding is magic
  9. costs matter
  10. less is more

These are the big ideas. The impact they can have, if adhered to over long periods of time, cannot be overstated.

Paying lip service to these ten big ideas is the easy part. Showing investors how they actually pay off over time and then living with them through the moments when they seem “broken” – that’s the trick. This is the work that good advisors do – implementation and communication matters a lot.

I wish someone explained this stuff to me when I was in my twenties. Or perhaps I had to learn these truths the hard way.

Source:

Six Impossible Things 
Ritholtz Wealth Management – July 14th, 2016

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. luminor panerai podróbka commented on Jan 22

    … [Trackback]

    […] Here you can find 60087 more Information on that Topic: thereformedbroker.com/2016/07/15/ten-big-ideas-we-believe-in/ […]

  2. best dumps website commented on Feb 06

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2016/07/15/ten-big-ideas-we-believe-in/ […]