Broker Check

The Little Things Add Up Over Time

October 25, 2019
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A successful long-term investment experience is pretty boring on a daily or weekly basis.  Usually, there aren't any significant moves or changes that need to be made. But there are many small decisions at the portfolio level that can really add up over time.  For example?

  • Strategically rebalancing your portfolio with periodic cash flows
  • Continuing to dollar cost average during difficult markets
  • Minimizing fees and taxes
  • Vetting and incorporating meaningful updates in academic research
  • Sticking with your plan even when things don't appear to be "working"
  • Not chasing the latest hot investment strategy with sizzling returns or a compelling story

Within a portfolio, the managers of a mutual fund should take a similar approach.  There are small incremental decisions they can make over time that potentially improve their results.  Watch the video below and hear from Dimensional CEO David Booth about how the little things add up over time:

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Past performance is not a guarantee of future results. Index and mutual fund performance includes reinvestment of dividends and other earnings but does not reflect the deduction of investment advisory fees or other expenses except where noted. This content is provided for informational purposes and should not to be construed as an offer, solicitation, recommendation or endorsement of any particular security, products, or services.