Math and time beat feelings and hope, which is Factor Based Investing® rule No. 8. Have you heard someone at a casino say “I’m feeling lucky?”

Hoping that a strategy works or hoping that someone somewhere with some algorithm will get you a better return is not a good way to build a portfolio. One of the things we talk about when addressing this topic is a casino. The reason the house always wins is because they have time and statistics on their side. All they have to do is wait. They may lose $1 million on someone that got really lucky, but over time, the house always wins.

 

Be the house, not the gambler.

 

The same goes for portfolios. If you build on the first seven principles that we have already covered which you can see by clicking here, you’ve got math and time on your side. That makes you the house instead of the gambler.

If you have any questions about Factor Based Investing®, don’t hesitate to give me a call or send me an email. I’m happy to help.

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