Almost all of the modern investment industry is built on the idea that smart investors can use today’s limitless informational resources, powerful analytical tools and the opinions of experts to beat the market.
It makes sense: By picking the right stocks, the right broker, the right manager or the right time to buy or sell, investors can earn returns that not only beat the averages, but also beat their less informed, less discerning peers.
We agree that it’s an appealing, even reasonable, concept. But we do not believe it.
We do not believe that investors (neither individuals managing their own portfolios nor professional money managers) can systematically beat overall market returns over any significant time period. In fact, it appears that the harder they try to do so, the less likely they are to be successful. What We Believe
At Lauterbach Financial Advisors, LLC, we have clear convictions about the nature of markets and what it means for portfolio creation and management: