Several years ago, we formulated a few investment principles that defined our approach to the investment markets. In revisiting this particular flyer from years past, I was struck by just how relevant they continue to be. While our approach to investing has evolved, the fundamentals remain the same. In case you may have missed them, here they are once again.
BCM Pillars of Investment Success
Philosophy
We believe successful investing can be achieved by applying risk management within portfolios by balancing to the cycles of the economy across different non-correlated asset classes.
Strategy
Determine an optimal security mix, meaning the components/funds that have different risk and return characteristics (i.e., stocks, bonds, commodities, cash, etc.). Indexed funds and ETFs are our preferred investment securities.
Discipline – also known as Our Behavior
A disciplined application of an investment philosophy and strategy greatly increases the chances of success. An absence of discipline usually leads to –
“You must control yourself. The hardest work in investing is not intellectual; it’s emotional. Benign neglect is, for most investors, the secret of long-term success.” – Charley Ellis