Less Is More

“If you want good investment performance forget you have an account.” –Myles Udland


Thoughts as we hunker down for the storm:

Before you totally dismiss Udland as being a lunatic who has lost his mind check this out. Fidelity Reviewed Which Investors Did Best And What They Found Was Hilarious

Fidelity conducted an internal study of which accounts between 2003-2013 did the best. Drum roll please….the best performing accounts were from investors who were dead. Coming in second were investors who had forgotten they had accounts at Fidelity. Pretty could confirmation how we get in our own way as investors and make decisions based on emotions and not facts.

Of course, investors should occasionally monitor their investment accounts. Rebalancing( which we do automatically for you) is a must to keep risk at appropriate levels. Major live events should also trigger a portfolio review to determine if desired risk levels need to be changed. I guess the key lesson is less is more. Once you have a properly diversified global portfolio at appropriate risk levels and a rebalancing plan in effect the best investors can do is sit back and let the markets work for them. The alternative does not work.