Each year, our Director of Research at the BAM Alliance, Larry Swedroe, unveils what he believes are some of the most important lessons of investing. This month’s Viewpoints will highlight three of our favorites from the list. The full list of nine lessons can be found here, and is well worth the time to read.
It was tough to choose only three, as they’re all insightful. But here are Waypoint’s favorite three (okay, four) lessons from last year:
- Active management is a loser’s game:
Ouch. This might sound harsh. But more and more people are becoming aware of the evidence against investing based on opinion. More investors each year are realizing the challenges for active managers to keep up with (and outperform) the markets, after fees and taxes. At Waypoint, we’ve learned that as well and came to a point in our careers where we had to put ego aside and truly measure returns against an evidence-based portfolio. This is when we realized the importance of playing the winner’s game.
- So much of returns comes in very short and unpredictable bursts:
There is simply no better lesson for staying invested during challenging times. > SEE MORE