- Markets Work – stocks generally trade at fair value because all publicly known information is easily known by market participants.
- Investing Versus Speculating – chasing returns rarely builds portfolios. However, we believe in investing money in well thought out portfolios, which include stocks from large and small companies based all over the world. We also believe the appropriate amount of bonds will build wealth over time.
- Risk can become Return – it is a rare occurrence when gain is accomplished without taking on risk. Stocks are riskier than bonds, and some stocks are riskier than others. A custom portfolio must take into consideration each client’s ability to withstand risk, both emotionally and financially, in relation to their need to achieve return.
- Portfolio Structure is Paramount – reducing avoidable risk is important, such as holding too few stocks, instead of the thousands that investing in DFA funds offer. Concentrating holdings in countries or industries also presents a risk that may not be rewarded over time, and can be easily avoided. We believe diversification is the key to building a portfolio with good structure.
- Smart Trading Increases Returns – DFA (Dimensional Fund Advisors, Inc.) has focused on cost-effective and sophisticated trading methods for over 25 years.
Dimensional Fund Advisors has focused on cost effective trading methods for 25 years. Take a look at their philosophy which made them into a super-power.