Evidence-Based investing comes from a compilation over more than a half century of many independent peer reviewed research results of how markets work. There are 12 key insights in this 4 part video series.
Here are the third increment in this 4:48 video about return factor insights:
7. Where to returns come from? With a bond? With a stock?
8. No guarantees and why investing based on evidence makes sense … what is evidence based?
9. What are the factors affecting returns? For stocks? For bonds?
10. Are there more recently found factors? One needs to capture expected returns without costs outweighing returns.
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PS. In the interest of disclosure: I do use DFA sub-managed SA Funds with most clients (not a fund requirement, but a business decision I’ve made). Analogies that explain the difference between investing and planning (Yes, they are different)! :
- Investing is the fuel for your plan – it is not the plan itself.
- Investing are the cables that support your bridge which is the plan that gets you where you are to where you want to get to.
This blog is not a solicitation; simply an explanation of the basic philosophy and approach.
Note: The video was produced by a different advisory firm – not Better Financial Education. The video describes the basic factors pioneered by Dimensional and many others which Better Financial Education also applies.