Investisms

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.

Have your own “investism?”  We would love to hear it.  Please share it with mario@eastbayfs.com or eric@eastbayfs.com.