Many investors have lost money trying to tie their fortunes to a trend such as demographics and an aging population.
When we dig into it, it may not perform as well as we expect; it may carry more risks than we expect; and, there is a better way.
Sometimes the investment climate calls for a somewhat unbalanced portfolio.
Plan for the worst. Hope for the best. And don’t agonize.
The various Principles of Operation that follow are not things I have dreamed up. They are frequently quotes or exact formulations or wording from Benjamin Graham, Warren Buffett, John Templeton, Philip Fisher, Peter Lynch, John Neff, Maynard Keynes and others.
What mattered most was confidence in one’s own judgment, from which would flow the Kiplingesque cool to keep one’s head ‘when all about you are losing theirs’
Math and algorithms will give precise answers. And therein lies the problem.
Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally
No investment decision should ever be motivated by trying to beat the market. The moment this impulse creeps in, the investor is liable to risk seeking behavior.