Is Your Portfolio Constructed on Conventional Theory?
18 Questions Blog Series
At von Borstel & Associates, we ask our clients 18 critical questions. The answers to these questions determine how we partner with each client and manage their wealth. This week we’re talking about constructing your portfolio on conventional theory.
Follow along with us through the 18 Questions Blog Series. You may be surprised by what you discover about yourself and your financial plan!
#17 – Is Your Portfolio Constructed on Conventional Theory?
Is your portfolio constructed on conventional theory? Many would say yes, and be satisfied without giving it much thought. But why do we want to base our financial future, success, and happiness on a theory that time after time underperforms the market?
It took me nineteen years to discover that I could choose evidence-based principles over the commonly accepted theory. It opened up a whole new world! If we put facts behind the process, we integrate the likelihood of success into investing while minimizing worry.
In contrast, the conventional theory is built on outsmarting the market.
Studies have shown this method to be unpredictable, especially in the long term. There are no academics or methodology used to place assets or purchase stocks. Instead, it relies on speculation to predict tomorrow’s market.
So, let’s use portfolios that utilize facts, evidence of long-term success, and academic principles to diversify and harvest premiums from select categories of investments. Let knowledge from previous Nobel prizewinners (in economics) guide us to invest and have more probable results in our financial future.
Simply put, it’s a question of whether you want to rely on facts or guesses to bring success to your portfolio. I believe that evidence-based principles are what should structure a portfolio.
That’s why I created the Vision to Wealth Process ®. We strive to build and maintain portfolios that yield the greatest level of expected return for a given level of risk. We are able to design portfolios with a simple yet robust structure that models portfolios similar to multi-billion dollar institutional investors. Each platform has its own unique risk/return expectations.
Which option will you choose?
1. Conventional Theory
2. Evidence-based principles
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Investment advisory services offered through von Borstel & Associates, Inc., an SEC Registered Investment Advisor.
