The Principles of Evidence-Based Investing

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:

evidence based investing


[1] This infographic is based on a PowerPoint presentation prepared by Dimensional Fund Advisors entitled: A Different Way to Invest