Top 17 Investment Strategies – Do They Work?
There are many strategies and styles of investing.
How do you sort through it all to set yourself up for success with good long-term rates of return?
In this week’s video and podcast episode I cover the Top 17 Investment Strategies, their history, and whether or not they actually work.
Watch and listen to find out:
- Are stock prices random? Why is this important?
- Are stock markets efficient?
- History of market thought.
- 17 investment strategies – Do the work?
- How to identify All Star Fund Managers.
I hope you enjoy it!
Ed
Planning With Ed
Ed Rempel has helped thousands of Canadians become financially secure. He is a fee-for-service financial planner, tax accountant, expert in many tax & investment strategies, and a popular and passionate blogger.
Ed has a unique understanding of how to be successful financially based on extensive real-life experience, having written nearly 1,000 comprehensive personal financial plans.
The “Planning with Ed” experience is about your life, not just money. Your Financial Plan is the GPS for your life.
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Hi Terry,
I have shown actual performance of the All Star Fund Managers vs. their index in past articles. I don’t disclose the names for several reasons.
First, we are the fee-for-service financial planners focused on planning your life. We are not licensed for investments and are not allowed to mention specific investments.
Second, the All Star Fund Managers in the portfolio change occassionally. Our portfolio manager changed 2 fund managers the last 3 years.
Third, identifying All Star Fund Managers is partly art and partly science. If I named them, there would likely be comments from readers with their opinions on which ones are better.
Fourth, our All Stars and the process of managing them are part of the “secret sauce” of working with us. You get our top quality financial planning advice plus expected index outperformance over time from our portfolio manager.
Ed
Hi CanadianFI,
We define risk based on how it affects your life, not with the short-term fluctuation stats (like standard deviation) the investment industry uses.
Risk is the risk that your 25-year return is less than 8%/year (or whatever return is in yourr Financial Plan). Therefore, “risk-adjusted” in the typical industry sense is not something worth considering.
Indexes have 100% equity risk. In general, your risk is no lower with an index fund (unless you use a weird definition of risk like varying from the index).
Indexes are fine for people who don’t know how to identify All Star Fund Managers. All the fund managers we invest with have track records of 15-30 years beating the index after all fees and we believe it is skill.
Every field has All Stars. In a hockey pool, would you prefer to have the average of all players or Connor McDavid?
Our portfolio manager selects a portfolio of 4-5 All Stars. In the rising market form 2019-2021, he beat the index by 3.4%/year after all fees (including ours). He lost more than the market in 2020. In general, he moves more than the market in both directions, but since the market rises most of the time, that should lead to a signficant outperformance.
Why would we buy an index ETF when there are All Star Fund Managers we are confident should outperform it over time?
Ed
You mention the all star fund managers that you and your clients are using in many of your videos. Why do you not include their names and their funds?
Thank you Ed.
I buy broad based ETFs every January. That’s all…
Ed, On a risk-adjusted basis, wouldn’t it be wiser to just use a simple broad market index vehicle like VEQT rather than gamble on an “all-star” fund manager that tries to outperform the market over time? On one hand, with a broad market index, you can almost certainly predict that you will get very close to market returns. On the other hand, with an all-star fund manager, there is a strong likelihood that you will underperform the broad markets over time. The Index could make more sense with much less risk.