Our investment philosophy is rooted in Nobel prize winning economic research.
We have the integrity and courage not to pretend that we can predict the direction of the stock market. Instead we espouse a highly disciplined approach that concentrates on the factors that determine portfolio performance while at the same time reducing costs ruthlessly.
Once subjected to objective scrutiny, traditional investment management is revealed as an expensive triumph of hope over experience.
Many studies have shown that traditional investment management (i.e. managers who claim to be able to predict which companies will perform best) performs worse than a simple strategy of using a low cost index fund.
Burton Malkiel, professor of economics at Princeton University, talks about the basic rules of investing, the importance of costs and the role of financial advisers.
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