Ideal Investment Portfolio Management: Principle 10 in Evidence-Based Investing

4 different runners - investment portfolio management

We wrap our 10-part series on the principles of evidence-based investing with how a fiduciary financial advisor can add value to your investment portfolio management. Most importantly, by combining financial expertise with personalized guidance, we help people ignore financial distractions, and focus instead on the steps that lead to a better investment experience.

10 Principles for Investment Portfolio Management

Have you enjoyed our 10-part series on evidence-based investing? Each wise wealth-building insight requires only a minute or two to read. In addition to today’s final installment, they include the following posts:

  1. Embrace Market Pricing
  2. Trying to Outguess the Market Has No Role
  3. Resist Chasing Past Performance
  4. Understanding How Markets Work for You
  5. What Really Drives Higher Expected Returns?
  6. Diversify Your Investment Universe
  7. Why Stick With a Globally Diversified Portfolio?
  8. Emotional Investing Is Risky Investing
  9. Six Hacks for Maintaining Investment Discipline
  10. Ideal Investment Portfolio Management

Why Evidence-Based Investing?

Chess pieces - investment portfolio management

Simply put, evidence-based investing can help you enhance your investment portfolio management and invest with greater confidence. Its tenets are based on at least 70 years of peer-reviewed academic inquiry into how capital markets efficiently and effectively deliver long-term wealth to patient investors. This means you’re using durable evidence rather than fleeting emotions to guide the way.

But don’t worry. We skipped the Greek calculations and multi-factor modeling. Instead, we translated each evidence-based principle into its meaningful, “what’s in it for me?” essence, so you can apply the science of investing into your own investment portfolio management.

Your Final Take-Home

No time to read all 10 pieces in the series? Not to worry. Especially as it applies to your investment portfolio management, here is your final take-home:

1. Understand the Evidence

You don’t have to have an advanced degree in financial economics to invest wisely. You need only know and heed the insights available from those who do have advanced degrees in financial economics. (See Insight #5.)

2. Embrace Market Efficiencies

You don’t have to be smarter, faster, or luckier than the rest of the market. You need only structure your investment portfolio management to play with rather than against the market and its expected returns. (See Insight #6.)

3. Manage Your Behavioral Miscues

You don’t have to – and won’t be able to – eliminate every exciting and frightening emotion you experience as an investor. You need only be aware of how often your instincts will tempt you off-course, and manage your actions accordingly. Hint: A professional advisor like Finely Wealth Advisors can add huge value here. (See Insight #8.)

How have we done in our goal to inform you, without overwhelming you? If we’ve succeeded in bringing our evidence-based investment ideas home for you, we would love to have the opportunity to continue the conversation. Give us a call today.

To see all 10 principles of Evidence-Based Investing at a glance, please visit our Evidence-Based Principles Guide. These principles inform our investing process.

About the Author Doug Finley

Douglas Finley, MS, CFP, AEP, CDFA founded Finley Wealth Advisors in February of 2006, as a Fiduciary Fee-Only Registered Investment Advisor, with the goal of creating a firm that eliminated the conflicts of interest inherent in the financial planner – advisor/client relationship. The firm specializes in wealth management for the middle-class millionaire.

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