– Yogi Berra
We invite you to read a blog by Larry Swedroe, financial author and national speaker.
Philosophy
A long standing debate about stock markets has been whether or not they are efficient.
Efficient means that the markets quickly and accurately reflect available information and set "fair" prices for buyers and sellers. Inefficient markets, in contrast, would enable an investor to exploit security prices that do not reveal all available information. While few would argue that markets are perfectly efficient, we believe that they are largely efficient and that there is no way to predict or identify in advance mispriced stocks or to select managers who will outperform the markets. Therefore, we dismiss the pursuit of active management (trading individual stocks and trying to time the ups and downs of the markets) as unreliable and speculative.
Instead, our approach to investing is based on Nobel Prize-Winning Academic Research called Modern Portfolio Theory. We turn to a passive strategy that ensures our clients will receive the market returns in a low-cost and tax-efficient manner. We use passively-managed, no-load mutual funds to build globally diversified portfolios. This allows us to concentrate on tailoring a portfolio to match an investor's need to take risk with his or her ability to withstand normal market volatility.
We believe our approach fosters a relationship grounded in trust and obligation, while effectively incorporating academic evidence on how markets can be used to help you achieve financial independence.
