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9950 westpark Dr, Ste 504, Houston, TX 77063 | (832) 320-1207

Investing vs speculating. That is the question

If you rely on the predictions of investing gurus, co man (Bernie Madoff) and prognosticators is just like relying on a crystal ball . Might as well go to Las Vegas and throw away your money there: at least, there, you may enjoy the surroundings and some shows. You are a speculator if you believe that stock picking, market timing and track record investing are what you should do. But, in fact, there is zero correlation between a stock picker’s market beating performance and his ability to repeat performance in the future.

As a prudent and scientific investor you should instead own equities. Owning equities is the greatest wealth creating tool ever. And, you should own equities all over the world accomplishing, at the same time, true diversification and eliminating overlapping (do not own the same stock twice)

Overlapping happens constantly in many mutual funds and the consequence is that, when the market goes down, it takes down with it all those mutual funds that have overlapping positions. Hence, you lose substantially.

Diversification and re-balance is the answer. While owning stocks all over the world you should pay careful attention to owning large, medium, small and micro caps, in the proper proportion with risk based on your own tolerance, so to have the maximum market return at the minimum standard deviation (risk)

We will be able to coach you to achieve this goals tailored to you. Call us for a no charge initial consultation at 832-320-1207.