Through our years of industry experience we have compiled a list of beliefs that guide our investing practices. We believe following these will create better outcomes for our advisors and their clients. At East Bay, we call them “Investisms”:
- Invest in things you understand; know what you own and why it fits in your portfolio. Don’t fall for fancy sales pitches, media hype or market hysteria.
- Invest while keeping costs low (e.g. transaction costs, taxes, etc.). Costs will only drag down returns over time.
- Invest broadly and globally. There is no singular “market.” Invest across asset classes, market capitalizations and styles. Proper diversification is key.
- Invest for the long-term. The long-term is more than a 1- or 3-year outlook. Daily or weekly market fluctuations should not affect your decisions, behavior, or outlook.
- Invest where the risk you are taking is compensated by the return you are receiving.
- Invest with your total portfolio in mind. Focus on the success of the overall portfolio, not on specific investments.
- Invest for the future. Don’t base today’s investment decision on past performance.
- Invest with a plan. Hope is not an investment strategy.