Indisputable Facts and Intelligent Reasoning 

"You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right." 

Facts you must know

Beating the Market

  • Each year only 25% of professional or individual investors beat the market.

  • Over a 10 year period, the percentage of professional or individual investors that beat the market drops below 6%.

  • Investors that beat the market do so by concentrating their assets in few asset classes—taking on higher risk.

  • The investors that beat the market do so by an average of less than 2%.

In summaryinvestors are not adequately rewarded for the risks they take attempting to  beat the market.

Asset Allocation 

  • Investors must establish individual performance objectives and select appropriate asset weightings to meet their objectives.

  • Diversifying among asset classes reduces risk and increases returns.   

In summaryinvestors need to carefully allocate their assets as it determines 90% of their  investment returns.

Risk taking

  • There are 2 times when you shouldn't take risk: when you can't afford to take risks, and when you can.

  • Investors should not take more risk than they need to take or are able to take.

  • Taking excess risks causes investor mistakes.

  • Intelligent investors are risk averse, wary of brokers and the media's encouraging action.

In summary—most investors are taking more risk than they need to take.


  • Wall Street makes their money from the fees they charge on client assets, not their investing prowess.

  • In today's competitive financial markets, there is no reason to pay more than 0.5% for mutual fund fees or Advisor fees.

In summarythe higher the fees, the lower the returns.

Investing mistakes

  • Investors' emotions are their worst enemy.

  • You cannot compete with investment professionals that have the time, expertise, and access to resources not available to the individual investor. 

  • Activity is harmful to your wealth.

In summarylosing money has devastating consequences on your retirement nest egg.

Selecting Advisors

  • Only Registered Investment Advisors put client interests ahead of their own, and are obligated by law for full disclose.

  • If you don't know how to, or have time to determine the value assets; or if you are susceptible to investment mistakes, get the help you need.

In summarywhen dumb money recognizes it's limitations, it ceases to be dumb.

"The future is never clear. Uncertainty is the friend of the buyer of long-term values." 






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