Archive for September, 2013

The Behaviour Gap

Investor behaviour matters, probably even more than skill. It helps to understand one fundamental concept: Investment returns and investor returns are almost always different. You earn the investment return if you invest your money and then don’t touch it. No buying, no selling, just holding. But real people rarely invest this way.

Values & Capital

The reality is that there is no such thing as the best investment. But that doesn’t seem to stop us from looking for it. What if instead of spending so much time searching for the best financial product, we spent our time reflecting on what’s really important to us and then aligning our use of capital with those values?

What’s New About A New Normal

The 2008 global market crisis and the struggling economy have left many investors fatigued. Despite two years of strong equity returns, some investors have been slow to regain market confidence. Many are accepting the talk about a “new normal” in which stocks offer lower returns in the future.1