The Secret Sauce
“Do you really want to invest your hard earned savings – the money you’ll need for your kids’ college or your own retirement- based on someone’s hunch or wish?” –David Booth, Executive Chairman and Founder of DFA
I certainly don’t want to. I got burned more than once early in my investing career doing just that.
The best news of all is you don’t need to invest based on someone’s hunch or wish. The secret sauce is having a truly diversified portfolio, the guts to be a long term investor and trusting in the power of human ingenuity.
Check of this short article where Booth explains the difference between a forecast, a wish, and a worry: The Difference Between a Forecast, a Wish, and a Worry