Principles

Investors face many pitfalls. Some are unavoidable. Some are a result of a lack of knowledge or understanding of how the markets really work.

Having a plan and sticking to it, being disciplined in other words, is how we strive to give our clients the highest probability of success in reaching their goals. Our job is to look beyond the random fluctuations of the day and focus on growing clients’ wealth over the full duration of their time horizon.

We adhere to the classic value investing principles of keeping fees low, making quality investments and staying away from trading. We also strive to ensure our clients’ portfolios are structured to maximize after-tax performance and are diversified enough to withstand market turbulence.

To that point, in the volatile economic times we find ourselves in, it’s all too easy to succumb to fear, and let our emotions dictate our investment decisions. As any successful investor will tell you, when it comes to investing,

there is always value in looking back and studying the principles that have guided the greatest investors in both good times and bad:

  • Building long-term wealth requires the ability to control one’s emotions and avoid self-destructive investor behaviour
  • Crises are inevitable
  • Historically periods of low returns for stocks have been followed by periods of higher returns
  • Do not attempt to time the market
  • Short-term underperformance is inevitable
  • Short-term forecasts and market predictions are random at best

But in particular, in this economy — and in this market — the lessons of the past can really teach us all a great deal. And Davis Advisors’ insightful compilation of ‘wisdom’, from some of the world’s most respected, and successful, investment minds does just that.

Last but not least, here is just a snapshot of what we, at Friedman Investment Group, believe are the critical factors in the pursuit of a better investment experience.

"An investment in knowledge pays interest."
- Benjamin Franklin

We truly believe that we owe it to ourselves to be well-informed. Please visit our Interesting Reading page, where we've put together a number of books we think every investor should endeavor to read. Visit regularly as we add to our selection.

Value beyond return