The Science and Art of Investing | AWM Insights #174

Over the past 150 years, data on markets has been collected, analyzed, and an optimal investment process has been discovered. This process has been shown to reward investors over long periods.

It includes taking advantage of diversification, flexibility, the efficiency of markets, and technological advancements that help markets function.

Even with the rigorous, science-backed methods of investing, there is still an artistic and emotional side that can’t be ignored.

The rewards of investing are founded on the principles of commitment and consistency, so managing your emotions, incorporating investments that matter to you, and being able to weather turbulence are just as important as the fundamentals.

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Episode Highlights

0:00 Intro1:55 Diversification and reducing unrewarded risk in your portfolio  2:29 Flexibility improves purchase prices3:15 Active management is more of a friction than a value-add3:50 How technological advances and market forces penalize active management6:43 The Art of Investing8:32 Investing as a practice10:33 Text us!