113 | On the Hook for The Wrong Thing

Once we’ve cared for some basic principles of investing, the amount of control that we have over investment outcomes is alarmingly less than any of us probably care to imagine.

Managing investments creates an implied assumption that we are impacting results by pulling special levers that don’t actually exist.

If we’re looking to attribute wins and losses to the correct people, then good and bad investment performance has no business being assigned to an advisor, when the overwhelming majority of investment outcomes are driven by...

Clear expectations.

Having sufficient cash on hand.

Behavior.

And patience.

We review investment options, we review investment performance, we give investment advice, and even help adjust your investment allocation if needed, but we do not manage investments.