The Connection – Basic Fundamentals & Advanced Techniques

January 23, 2019  |  

The Connection – Basic Fundamentals & Advanced Techniques

In anticipation of our fundraising event “Live The Stream: The Story of Joe Humphreys”  to be held on February 11, 2019, I think it is fitting to share a story of Joe Humphreys and I during a fly-fishing trip at Spruce Creek.  The lessons learned fishing can be applied in many aspects of life, both on and off the stream.

At 89 years old, Joe has the same energy and enthusiasm about teaching fly fishing techniques that he had when I first met him more than 30 years ago. Joe’s sense of humor, combined with the pearls of wisdom blended into his lessons, are always valuable in the moment, and even more so over future reflection. I was reminded of one such lesson on my recent trip. Joe shared that “The basic fundamentals, refined to perfection, are your most advanced techniques.” Joe had shared this with me over the years I have known him, but it particularly resonated with me now.

In my mind, this is as close to a universal truth as you are going to find. It can be applied to fly fishing, golf, football, medicine, business management, and of course investing.

When it comes to investing, those fundamentals can be boiled down to a few simple principals that guide us at Independence Advisors. These principles, if refined to perfection, can become your own most advanced techniques and your secret weapon in investing for the long-term. Following these principals will allow you to outperform the masses who are relying on the latest, most complicated and expensive solutions. Their reliance on these solutions gives them the false hope that complexity and efficacy are perfectly correlated and will improve their odds of meeting their financial goals.

The investing fundamentals with which you need to be familiar are:

  1. Diversification: Broad diversification is your friend. It is as close to a free lunch as you will find in investing. Eat as much as you can!
  2. Watch your costs: Investing is not free. However, make sure that your costs are reasonable.
  3. Discipline: Your success as an investor is heavily dependent on your ability to stay disciplined and rebalance while everyone else loses their minds. Having an investment plan that you can stick with during good and bad times is critical.
  4. Minimize Taxes: It is crucial to be cognizant of your taxes. There are many techniques like loss harvesting that can reduce your tax liability and thus allow you to keep more of your earnings.

In over 30 years of experience advising clients, I have seen again and again that the most successful investors are able to consistently refine these basic principles and adopt them as their most advanced techniques. To learn more about these topics please visit our Evidence Based Investing Center.

To purchase tickets for our upcoming fundraising event, please click here.

Registration with the SEC should not be construed as an endorsement or an indicator of investment skill, acumen or experience.  Investments in securities are not insured, protected or guaranteed and may result in loss of income and/or principal.  Diversification does not eliminate the risk of market loss an A long-term investment approach cannot guarantee a profit.  This communication may include opinions and forward-looking statements.  All statements other than statements of historical fact are opinions and/or forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”).  Although we believe that the beliefs and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such beliefs and expectations will prove to be correct.  Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.  All expressions of opinion are subject to change.  You are cautioned not to place undue reliance on these forward-looking statements. Any dated information is published as of its date only. Dated and forward-looking statements speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any dated or forward-looking statements.


About Chas Boinske

Charles P. Boinske, CFA, is a 30 year investment management veteran overseeing the strategic direction and portfolio management process for Independence Advisors, LLC. Have a question for Charles? CLICK HERE TO ASK CHARLES
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