The Principles of Evidence-Based Investing

“Evidence-based” investing is a systematic approach to investing, applied consistently across all strategies.

At its core, evidence-based investing relies on factors you can control (your asset allocation, global diversification, low costs and fees) and ignores those you can’t (timing the market, trying to pick stock “winners” or attempting to identify outperforming actively managed mutual funds).

Evidence-based investors rely on logic and data. They are not influenced by their emotions. They don’t try to predict the future.

Here’s what you need to know to become an evidence-based investor¹:

Footnotes

[1] This infographic is based on a PowerPoint presentation prepared by Dimensional Fund Advisors entitled: A Different Way to Invest. https://my.dimensional.com/asset/610/a-different-way-to-invest.

[2] https://www.stash.com/learn/what-is-compounding/

Bert Doerhoff, CPA

"We all have an obligation to leave this world a better place than we found it."

Bert started his own firm, Doerhoff & Associates CPA, as early as 1978. Specializing in thinking differently and challenging the status quo, Bert went on to receive various national awards, from the Jefferson City Reader’s Choice Awards’ “Top Accounting Firm and Top Wealth Manager” to CPA Digest’s "Digest 50 Award." He has also spoken at conferences throughout the US, held statewide offices in professional associations, and is a published author in his field.

From starting his career working for Peat, Marwick, Mitchell & Co, a worldwide CPA firm known as KPMG, Bert is now a registered investment advisor working with select clients and providing them strategic wealth management to help protect and build wealth for life. He also spends countless hours making a permanent difference in the lives of the less fortunate by working with programs to help them become self-sufficient.

Find him on LinkedIn.

The Principles of Evidence-Based Investing

Footnotes

Bert Doerhoff, CPA

Recent Posts