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Based on a framework that if you are willing to give up most
of the emotional excitement from investing and deploy some relatively simple
but exceedingly dull techniques, you can consistently perform in the top
quartile of investors in the short-run and top decile in the long-run.
FRAMEWORK EXPLANATION
1. Behavioral Finance
• Understanding investor patterns of irrationality
2. Efficient Investments
• Exclude investments designed to make others rich at your expense.
2a Asset Allocation
• Select asset classes to increase your return for your level of risk.
2b Diversification
• Removing unnecessary risk.
3 Low Hanging Fruit
• Easy pickings for free additional return.
MPT
• Modern Portfolio Theory
Mathematically Superior Wealth Accumulation
• Compounding – “the most powerful force in the universe” (Albert Einstein)
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