On the short list of names familiar to investors around the globe, business magnate, financial giant and philanthropist Warren Buffett ranks near the top. He is to investing what Steve Jobs has been to technology or what Mark Zuckerberg has been to social media. The stuff from which legends and fortunes are made.
Then there are the rest of us. Those of us who don’t have billions of pounds, but who still deserve a fair chance at successfully investing what we do have. Many investors keep an eye on Buffett’s activities as they attempt to replicate his success, but most have little if any feel for how he’s pulling it off.
That’s where we come in. We’re not here to recommend an investment strategy based on fast scores or fancy tricks from Buffett or anyone else. Rather, our goal is to explain how you can invest according to many of the same basic tenets that Buffett has applied to building his own timeless wealth.
We help individuals understand and apply a winning investment strategy in pursuit of their own most meaningful life. That is why I founded MFP Wealth Management and what continues to drive our professional passions and client relationships.
Evidence Based Investing. What we’re sharing is nothing new. It’s based on decades of rigorously peer-reviewed inquiry by an international base of scholars and practitioners. The result is a body of durable evidence on:
1. How markets actually work
2. How to objectively plan and manage individual portfolios in light of that understanding
While we continue to add to our knowledge with ongoing inquiry and new insights, a core of essential investment tenets has crystalised and withstood the tests of time.
Investing based on your highest interests. If evidence-based investing is expected to work so well, why isn’t everyone doing it? Why are so many investors struggling but failing to achieve even market-level returns?
• The largest swath of the financial community earns the majority of its living on commissions made when you place trades — whether or not those trades make any sense for you.
• Many others build their financial business by selling complex products that require extreme, buyer-beware scrutiny. Risk-laden products and their hidden costs may or may not reward you, but they almost certainly will reward those peddling them.
• The financial media must sustain readership. It loves the next “big thing” In my opinion it just makes noise to distract us.
Given the conflicting incentives found along the food chain of financial market players, it’s no wonder there’s so much misleading information filtering down to individual investors. It’s easier to become consumed by all the noisy distractions than to heed the quieter voices of reason.
Investing according to plan. You also may be wondering: If evidence-based investing is so simple, can I do it myself? The answer is a definite maybe. As Buffett has observed, “Investing is simple, but not easy.”
Bottom line, you need to have
• financial acumen,
• emotional temperament
• practical tools to plan, implement and manage your own best investment portfolio
• the free time to work on your portfolio
MFP puts it all together for you. If we haven’t already made this abundantly clear, we believe in the simple elegance of evidence-based investing and the dramatic improvement it can bring to your experience as an investor. But there’s more to it than that. True wealth is the bringing together of you and your relationships, of your intellectual and emotional needs, of your money and your mission. You win by simply (but bravely) investing according to your most heartfelt personal goals in the face of continuous market uncertainty. We win by helping you efficiently apply the right processes, tools and mindset to do just that.