Humans are Innately
Poor Investors
Since the beginning of mankind, human instincts have dictated we flee from pain and run towards pleasure. However, successful investors must do the exact opposite. We must create the habit of selling investments that give us pleasure (sell high) and buying those that give us pain (buy low)*. This is much more difficult to implement than you might think. We bring the coaching and discipline to execute this strategy over a lifetime.
* – Research Affiliates, 2018
Small Mistakes Today Have
Huge Effects on Our Future
Time and time again, studies have shown investor mistakes account for at least 3% of the gap between market returns and actual investor’s returns*. The reason for this is because small mistakes or missed opportunities today have huge consequences down the road. A mistake that costs you $10,000 at age 40 ends up being a $728,000 mistake by age 85 if that $10,000 grew at 10% per year for 45 years.
* – 2016 Dalbar Study
Objective Truths Must Overpower All Else
To be a successful investor, your cognitive faculties must overpower your emotions, instincts, and your perception of reality*. The objective truth must be so strongly rooted, such that you do not fall prey to yourself or other traps. Of course, all these barriers are further exacerbated by the media who often profits by feeding into your greed and fears in the name of entertainment. We coach to instill the objective truths in you to overcome these obstacles over a lifetime.
* – Mind Over Money, Matson Money, Inc
Establishing Our Purpose
Gives Us Investing Freedom
Too often, we live as passengers in our own lives. We go through the motions without establishing our intended direction. This reality deeply impacts our financial picture. Without boldly stating our purpose for money, we are more prone to following trendy, speculative investments that take us down a rabbit hole to our financial ruin. We coach our clients to identify their true purpose for their wealth so that they can direct their resources toward what they care about and avoid endless cycles of misdirected happiness.
Source of Wealth Creation
At Presidio Financial, we believe wealth is created from the hard work and innovations of thousands of companies across the globe. Wealth is not created from a money manager’s attempt to predict the future of the market.
We believe in portfolios that capture the wealth created from these companies without speculating and gambling with your investments.
Evidence-Based Portfolios
We believe academic research should dictate how we invest our money. We borrow our investment philosophy from the decades of research performed by Nobel Laureates. These portfolios leverage various risk factors to provide the highest returns for each risk preference.
We believe that making decisions based on evidence rather than predictions will give you the best odds of success. Evidence-based portfolios are low cost, diversified across the globe, and aim to capture market returns through the use of structured asset class funds, passively-managed ETFs, and other broad market mutual funds.