Rules not hindsight

We don’t run portfolio comparisons with potential clients because it’s meaningless.

If your current portfolio has outperformed our model portfolio, it might not in the future. And we can’t predict the future.

Besides, what would you do with the information if our model portfolio outperformed yours by 2% over the last three years? You can’t go back in time and earn those returns.

Anyone can put a cherry-picked proposed portfolio in front of you. I’ve had people show me proposed portfolios that were made up of only the Nasdaq Index, Google, Apple, and Nvidia. Anyone can build the best portfolio ever constructed when they know how it ends.

We don’t have hindsight. But we do have rules.

Diversify. You should always hate something in your account. Own a lot of companies. Own companies in different countries. Own different sized companies.

Know your risk tolerance. The best investment portfolio is the one you don’t tinker with. If you know you can’t handle a potential 50% drop, then an all-stock portfolio isn’t for you. If you know you’ll need money within three years it must never be in the stock market.

Never tinker. There’s a reason our model portfolio is made up of just two holdings. We know how those two holdings have performed and we know how they work.

Allocate to risk premiums. You’re compensated for the risks you’re willing to take. When you look at your accounts and see red everywhere, day after day after day, that’s the price you pay for long-term returns. GICs and savings accounts can’t go down in value. But sit in them for twenty years and you will be jealous of people who were invested in equities.

Avoid bonds. Unless you have a specific reason to be invested in anything other than stocks, always invest in stocks. Owning a business is better than loaning to one.

If you're looking for an advisor who will show you a glossy, cherry-picked performance comparison, we're not the right fit for you.