Posts by Darryl H

Creating your own 10-stock exchange-traded fund (ETF) with an annual rebalancing strategy, backed by a robust two-decade-long back-tested track record, offers a unique set of advantages for investors seeking to optimize their portfolios. This approach combines the benefits of customization, strategic allocation, and historical performance analysis to potentially outperform the broader market while maintaining a…

In the realm of investment, the phrase “Ain’t nothin to it but to do it” embodies a deceptively simple truth: the essence of successful investing lies not in complex strategies or sophisticated tools, but in the unwavering commitment to executing a well-thought-out plan. At its core, the phrase encapsulates the idea that the theory behind…

Investors often assume that financial advisors or asset managers are primarily motivated by the goal of maximizing their clients’ returns over the long term. While this is an essential aspect of their job, it is equally crucial to recognize that advisors operate within a complex professional landscape where various pressures influence their decisions. One of…

Investing wisely and achieving great returns is not solely dependent on in-depth knowledge of the stock market or the ability to predict market movements. Instead, it primarily hinges on the investor’s capacity to make informed choices and process information effectively. This fundamental ability empowers investors to navigate the complex world of finance, even without delving…

A backtested investment strategy rooted in consistent fundamental data holds immense validity and reliability in the world of finance. Unlike strategies based on fleeting market trends or speculative indicators, fundamental data remains constant over the years. This stability provides a solid foundation for backtesting, enabling investors to assess historical performance accurately. When a strategy is…

Stock market volatility is a double-edged sword, capable of acting as both a formidable enemy and a valuable ally for investors. Understanding this duality is essential for navigating the complex world of investments.   Volatility, essentially the degree of variation in trading prices over a certain period, can be your friend in several ways. For…

Allowing daily news headlines to influence your investment decisions can have detrimental effects on your investment returns over time. This phenomenon is rooted in the tendency of many investors to react impulsively to breaking news, believing that staying constantly updated will give them an edge in the market. However, this approach often leads to emotional…

The consensus opinion that no investor can consistently outperform the market over time has persisted for several reasons, but it’s important to recognize that this is not an absolute truth. In reality, some individual investors have managed to achieve market-beating returns, provided they employ the right strategies and have the discipline to stick to them.…

Investment newsletters play a crucial role in guiding investors towards making informed financial decisions. When it comes to choosing between newsletters that emphasize building and managing a portfolio of stocks and those that focus on stock recommendations of a single stock on a recurring basis, several compelling reasons make the former superior.   Firstly, a…

Crafting an investment strategy that aligns with your individual or organizational style, personality, and values is crucial for achieving better investment results over time. This personalized approach to investing helps to manage risks, maintain discipline, and stay committed to your long-term financial goals.   A well-defined investment policy serves as the foundation of any successful…