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Blog

Steven Lugar

At Beaird Harris, one of our primary goals is to provide a successful investment experience. That means more than considering investment returns. It means offering peace of mind knowing that a transparent approach backed by decades of research is powering every decision. The goal is to help people be prepared, so they can stick with their plan.

In most endeavors, there are things you can control and things you can’t. That’s true in life. That’s true in business. That’s true with investing. The good news about investing is that markets have rewarded investors over the long term. But over the short term—as anyone who’s paid attention to markets knows—markets go up and markets go down. We thought it would be helpful to share some observations about what we think it takes to have a good experience.

Things You Can’t Control

THE RANDOM PERFORMANCE OF TRADITIONAL MONEY MANAGERS

Few things have been studied as extensively as the performance of professionally managed funds. While the results indicate that some managers have good track records, the number of managers that can successfully pick stocks are fewer than you’d expect by chance. So, why even play that game? You don’t need to.

What does that mean to investors? It means that even after analyzing all the data, you can’t separate skilled money managers from lucky ones. And if you can’t identify superior managers after the fact, how can you identify them in advance? Based on the overwhelming evidence, there is no magic to investing.

THE UNCERTAINTY OF MARKETS

Throughout their lives, people must continually deal with uncertainty and make choices—what school to attend, what career to pursue, where to live, and so forth. You make these decisions without knowing the outcomes. You look at all the possibilities, and then you decide.

Much of the financial services industry is geared toward making people think they can eliminate uncertainty in investing. However, the future is unknowable. The best approach to dealing with uncertainty is to make informed choices, adjust as your needs and objectives change, and be comfortable with the range of possible outcomes.

Things You Can Control

DEVELOPING AN INVESTMENT PHILOSOPHY YOU CAN STICK WITH

A philosophy serves as a compass to guide you through turbulent times. When you’ve got a compass, it doesn’t take drastic directional changes to find your way. Small adjustments are all you need to stay on course.

During the Global Financial Crisis, the US stock market was down more than 50%, which seems to happen about once every generation. A lot of people were stressed out by the uncertainty, so they cashed out. That locked in their losses. The market, as it turned out, rebounded and some of those people who got out of the market may have to wait decades to get back to where they were. It’s unfortunate they didn’t stick it out so that they could have better weathered the storm.

TRUSTING YOUR STRATEGY AND BEING PATIENT

Trust involves many different parts. To trust markets, you must understand how they work, which means having a source of reliable knowledge. The best source is scientific research, such as our evidence-based approach to investing, not opinions and hunches.

Investing is a dynamic process and a lifelong journey. It’s having a philosophy you can stick with, considering the range of possibilities, and adjusting along the way. Stay disciplined, control what you can control, and keep a long-term view on your destination so you can focus on what really matters – living a happy, healthy and meaningful life.

Attached you’ll find our newest brochure, Pursuing a Better Investment Experience.  The principles described within will help you better react to market events, even when those events are globally significant or when, as some might suggest, a paradigm shift has occurred, leading to claims that, “it’s different this time.” This brochure was written for investors at all experience levels and can be read and understood in just one sitting.

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Please note that any information or content on our Website, or any forms or tools on our Website which allow you to submit information or make calculations, and your use thereof, are not intended to provide any kind of professional advice, consultation or service, including but not limited to, legal, accounting, tax, or business advice. Nor does any such information, content, forms, or tools, or your use thereof or reliance thereon, create or constitute an attorney/client, accountant/client, or consultant/client relationship. You should therefore not use our Website or reliance on any information, content, forms, or tools on our Website as a substitute for any kind of professional advice. Rather, you should consult with a licensed professional, including one employed by our Company, for any accounting or tax questions you may have. You agree that we will not be liable to you or to any third party to the extent you treat or consider any information, content, forms, or tools on our Website as constituting any kind of professional advice. The information and content, including but not limited to forms and tools, presented on or made available through our Website are made available solely for general information purposes. We, therefore, do not warrant the accuracy, completeness or usefulness of any such information, content, forms, or tools, and any reliance you place on the same is strictly at your own risk.  We disclaim all liability and responsibility arising from any reliance placed on such materials by you or any other visitor to our Website, or by anyone who may be informed of any of its content.

Our Website provides illustrative lists of services that we provide. Nothing contained on our Website shall be construed as an offer or guarantee to provide any particular services to you, nor shall anything on our Website be construed as a direct solicitation for employment by any persons, companies, or organizations. Prior results we have obtained for others do not guarantee a similar outcome.

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