We believe that;
- Risk and return are related and so the higher the return you require (or are being promised) the more risk you must take
- The purpose of most investments is to provide long term returns above the rate of inflation
- Speculative investments are usually short-term and maybe unreliable
- In the long term, Bonds will outperform Cash and Shares will outperform Bonds
- We believe that there are sources of higher expected return
- Identifying mispriced shares and timing markets are unreliable practices that cost money and increase risk
- Costs matter and that reducing investment cost increases the probability of positive returns
