My investment philosophy

My investment philosophy is based upon rigorous academic research from Nobel Laureate winning academics.

I believe that investment markets are broadly efficient and share prices reflect the aggregate knowledge of all buyers and sellers within the market.

I believe that it’s extremely difficult for anyone to consistently beat the markets over time, particularly after charges. Periods of outperformance are more likely to be attributable to luck rather than skill. If skilful fund managers exist, they are very hard to find; investors are better off investing in an index. The returns of any single index your neighbour or brother-in-law achieve are irrelevant. The only return that matters is the one needed to achieve your financial objectives.

I believe that the fees you pay are inversely correlated to the returns you receive. I.e. the more you pay in fees the less you get back in returns. There is no evidence that the more you pay a fund manager the higher returns they generate.

I believe there are certain factors (characteristics) of share prices that are consistent across stock markets and pervasive over time, which can lead to above-market returns. But, to benefit from them a long-term, patient and disciplined approach to investing is required.

I believe that investment portfolios should reflect your willingness, need and ability to accept short-term market volatility. Risk and reward are inextricably linked; you can’t have the latter without the former. Volatility is only one measure of risk and it reduces over time. The key to investment success is a long-term buy-and-hold strategy that invests across global investment markets at a low cost with minimal intervention.

I believe that an individual’s behaviour is the greatest determinant of the returns they receive. Patience and discipline trumps speculation and market timing. That’s why you can be confident your wealth will be managed according to your priorities and long-term objectives.