My investment process is grounded in a few investment truths that are outlined below. This is the starting point before I even begin to screen managers.
- Asset allocation matters more than manager/security selection
- Forecasting is bullshit
- Expenses are one of the few things that investors can control that impact returns
- Taxes are another one
- Humans are not wired for investing
- You must be compensated for risk
- All else isn’t equal
- The biggest obstacle to investment success is yourself