As the market has experienced a bit of turbulence in recent days, investors have felt a bit squeamish. Human behavior shows us that when results are not exactly as we anticipate, we question our motives and start examining how the other side is doing, or rather how the active management strategy fares. Unfortunately, their excuses for poor performance can’t replace simple mathematical odds. Larry Swedroe provides a nice analysis of why the odds are just not in their favor ,“It’s not that the game is impossible to win; it’s just that the odds of doing so are so poor that it’s not prudent to try.”

Stick with your long term financial plan, it may get bumpy along the way, the winds may shift, and there is sure to be turbulence. However, just as you wouldn’t anticipate your pilot abandoning the plane he captains, nor should you abandon the plan you have set in place to get you from point A to point B. Fasten your seatbelt and keep your sights set on the horizon ahead.

Bill Schultheis
As the author of The Coffeehouse Investor, Bill Schultheis is also a Financial Advisor and Co-founder of Soundmark Wealth Management.

The Three Principles

1. Save for a rainy day.

Develop a long term financial plan.

2. Don’t put all your eggs in one basket.

Diversify in different asset classes.

3. There is no such thing as a free lunch.

Capture the entire return of each basket, or asset class, through low cost index funds.

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The Coffee House Investor Book Cover


How to Build Wealth, Ignore Wall Street & Get On With Your Life
by Bill Schultheis


Who is The Coffeehouse Investor?

This non-commercial web site is for investors across the nation and around the world who recognize and embrace the sophistication of simplicity in their investment portfolios as well as their personal lives.

The Coffeehouse Investor does not provide financial advice - our purpose is to provide creative education for investors who want to build wealth, ignore Wall Street and get on with their lives by making informed, intelligent investment decisions.