Reflecting on my 40 year career in the financial services industry prompts me to share some personal observations of the best kept secrets for managing money. A simple touch of the keyboard reveals an overwhelming body of academic research and evidence, of secrets hiding in plain sight among millions of web postings on finance. In my article I outline the content that has played a major role in driving our firm’s beliefs on investing. I outline five conclusions in the article that will help you adopt a system for managing your wealth that is wise and delivers returns that will accomplish your goals.
I began my career in the banking industry, honing my money management skills in audit, comptrollership, and trust functions. Transitioning into investment management and counseling our wealthier clients, I began to take an interest in working with our institutional clients, as the investment principals that are used are virtually identical.
My approach is to help our clients achieve long-term success with their financial goals. The large quantities of financial data that cross my desk can be challenging to assimilate and comprehend, but the search for answers while traveling the path of discovery is what creates the solutions we seek. And it’s this mindset that has resulted in the development of the processes we use with our clients at Glass Jacobson Financial Group. What I’ve learned through years of hard work is that it is virtually impossible to beat the financial markets.
THE FIVE CONCLUSIONS (ARTICLE SUMMARY)
Here are my five fundamental conclusions learned from 40+ years of investing experience:
- Relatively few mutual funds or managers deliver index-beating returns.
- Manager outperformance is not a reliable indicator of future performance.
- Strong track records fail to persist among high-cost funds.
- High-cost funds and excessive trading costs contribute to underperformance.
- Developing a long term process to consistently select managers who outperform index benchmarks is extremely difficult … and statistically improbable.
In the article below, I will present the research and rationale which influenced my conclusions. Feel free to download the article and reach out to me with questions you may have. I look forward to hearing from you!