Baseball season is back in full force and I am always optimistic my team will be more than a winning team – but be “that team” this season. Fortunately, unlike in Major League Baseball, where only one team can triumph each year, a winning investment strategy is available to any investor. Did you know that a winning investment strategy is available to any investor? The trick is to play with the market instead of trying to compete against it.
Just as winning ball teams focus on game factors that are within their control, we suggest you focus as an investor on the financial actions you can manage. These include minimizing unnecessary trading costs and investing in funds that are managed accordingly. In so doing, you may not hit a daily home run, but you’re far more likely to score the long-term returns you need to reach your personal financial goals.
This video from our friends at Dimensional Fund Advisors helps explain how that works.