After 30 years as an advisor, I have three steadfast and unfaltering beliefs about successful investing. First, I believe that what most people focus on is dead wrong. Neither investment selection, market timing, costs, or accurate forecasting are the keys to success. They can all be important, but my experience, with hundreds of investors in all types of markets, has taught me that human behavior is the most critical element. Indeed, human nature is the enemy of successful investing.
Secondly, every market cycle has treacherous storms. So how do we avoid getting smashed on the rocks? Over and over, hundreds of times, I've seen firsthand how a robust financial plan is a savior in tough times. Without a concrete plan, it is simply too easy to give in to fear or greed, making mistakes that some will regret for the rest of their lives. Of course, every plan needs a trusted professional advisor to oversee the plan and to adjust and fine tune when necessary.
Lastly, looking back over the last 200 years, there is one compelling lesson. It is simply black and white and incontrovertible. There is only one investment that makes money consistently after taxes and inflation. Either directly or indirectly, we must own shares in the great companies of the world. Building wealth is simply impossible without them. If you'd like to discuss just give me a call.
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