Our investment approach is based on the following principles:
Diversification is a simple yet powerful tool.
- Complexity is often disguised as diversification.
- We only add asset classes when we believe they will enhance long-term results.
A value orientation provides a margin of safety.
- Our decisions are grounded in our value orientation. We seek to avoid overpaying.
- The human factor can make markets irrational, creating opportunities for disciplined investors.
Discipline means using history and valuation metrics as a guide.
- While history doesn’t always repeat itself, rarely is it true that “this time is different.”
- Focus on long-term results rather than short-term performance.
- Rebalance systematically.
Achieving real returns requires attention to inflation, taxes and expenses.
- Long-term inflation will erode the value of investment assets.
- Tax-inefficient investments can destroy long-term results.
- Investment expenses are a drag on portfolio returns.
Consistency breeds results.