The most important part of our investment philosophy is that because markets are so efficient at pricing shares and bonds it is really hard to outperform these markets after costs consistently over time.
It is also fair to say that this is an area we often get challenged on most by new clients, probably due to the massive marketing budgets the asset managers use in attempt to convince us to invest with them.
We appear to want to believe that the experts and their research departments can identify the winners of future years (crystal ball anyone?).
One of our investment partners are EBI portfolios and most weeks their Chartered Financial Analyst, Alistair Meadows publishes a blog on a Saturday morning (yes I do read this type of thing at weekends!).
A few weeks ago he wrote a blog (explaining in an eloquent way I can only dream of) explaining why it is so hard to outperform the markets, if you are interested please click here to read this.
Have a great weekend
This article should not be considered investment advice or an offer of any product for sale, it contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular, strategy or investment product. Information contained has been obtained from sources believed to be reliable, but is not guaranteed. Past performance is not an indicator of future results