As a business that puts clients first, it’s our duty to position ourselves at the cutting edge of current thinking. A few years ago, the story around financial advice began to change as the case for evidence-based investing strengthened.
From an early age, we’re taught that winning or beating the competition is good, but evidence-based investing tells us that nothing could be further from the truth when it comes to investing.
Competing to win in this context – whether that’s running after a new investment tip or trying to time or guess the market – often only results in a costly loss. It’s virtually impossible to consistently pick winning stocks that no one else has spotted and the performance of ‘star’ fund managers is often as much to do with luck as judgment. Playing this game incurs significant costs and encourages financial misbehaviour, both of which can damage your long-term wealth.
Evidence-based investing provides a structured and disciplined approach to portfolio construction that creates wealth by capturing the returns of the whole market, driving down costs and removing the emotional decision-making of a beat-the-market mindset. Of course, investing means taking risks.
For more information and to see the evidence, click here to download our guide.