The Investoristics 10

Most are familiar with the phrase, “Past performance is no guarantee of future results” which simply implies that just because your investment strategy did well for 18 years doesn’t mean the success will continue.  So why does everyone want to know how well a strategy has done in the past if it doesn’t guarantee future results?  It’s simple, most people want a winning strategy that can potentially outperform the broad market, otherwise, why invest in a strategy that is potentially more costly with worse performance than the overall market.

There are many debates about whether one can outperform the broad market (S&P 500) over time but let’s put that debate in the proper perspective.  First, most mutual funds or pension funds can’t outperform the market simply because their investment policies won’t allow them. Brokerage firms and Registered Investment Advisory firms have rather restrictive policies as well.  Lastly, Individual investors, in general, lack an effective strategy and don’t really have the time or interest to spend on developing a common-sense approach. At Investoristics we employ a common-sense investing approach that produces greater returns over time.

Our approach, using a model portfolio tested over the past 18 years (January 1, 2004 – December 31, 2021), has outperformed the market by almost 13% on average.  So, what does that mean?  It essentially states a historical fact that is not guaranteed to continue in the future.  However, if a strategy is based on the use of fundamental data to find stocks that have characteristics that are indicative of future outperformance, then it makes sense to continue investing using the same method.  If the underlying fundamental data used to predict future performance never changes, as any fundamental ratio is always the same whether we are talking the past, present or future, then why should your future performance not continue to be better than the broad market, commonsense right?

The biggest roadblock to market outperformance for individual investors is the lack of available and effective investment options as well as a lack of discipline and willingness to stick with a process or strategy that works.  For example, although it might be well known that a proper diet and exercise plan can alleviate lots of problems for many individuals, people don’t have the discipline to stick to a diet and exercise plan despite its benefits.  At Investoristics, our investment approach has been tried and tested and makes commonsense.  If you’d like a great common-sense approach to investing, then join “The Collective” and feel confident about your future return prospects.