What we've learned from 40 years of investing

This is a very important metric. It’s one of the main drivers of your investment strategy. If you have all the money you need to accomplish your goals, there is almost no reason to move your investments up the risk ladder. It’s great to leave more money to your foundation, but not at the expense of your financial security.

If you don’t have financially skilled friends or family, it’s helpful to work with an advisor to discuss your goals. In our opinion, many wealthy families would be best served by a financial advisor who charges an hourly fee instead of the more common fee for Assets Under Management.

If you think Interest rates will drop, there are many ways to express this in your portfolio. Here's how to avoid the mistake that cost us hundreds of thousands of dollars. The duration of a bond indicates how sensitive it is to changes in interest rates. I thought I understood the duration of Treasuries. Unfortunately, I learned that I didn't and it was a very expensive lesson.

Many investors select mutual funds based on their past performance and/or their Morningstar Ratings. Both of these metrics have proved ineffective at predicting future performance. We discuss some of the research and reasons why.

If your Investments are in a Taxable Account, you should know exactly how Turnover affects your returns. Many investors don't realize how much Capital Gains taxes affect their returns. Unless you're generating SIGNIFICANT Alpha, the taxes on a portfolio that has annual turnover can significantly underperform an index.

Warren Buffet frequently talks about the benefits of a concentrated portfolio using your best ideas. We’ll discuss why we think this is a fine strategy if you’re on the road to becoming rich, but not if you’ve already arrived. In our opinion, Buffet’s portfolio is a lot more diversified than what you see on the surface.