Investmentprinciples

title: Investment Principles description: [AFW S.2] Index of Our Investment Principles published: true date: 2026-06-30T08:07:48.764Z tags: editor: markdown dateCreated: 2021-04-17T05:56:38.273Z

• 1. Our Investment PhilosophyWe are goal-focused, planning-driven, long-term equity advisors.
• 2. Four Core PrinciplesKeep these investment concepts front-and-center in your mind.
• 3. The Magic of Compound InterestThe most powerful force in the universe.
• 4. Deception of Rate-of-Return & Fallacy of the HypotheticalLies, damned lies, and statistics.
• 5. Investment vs Investor PerformanceHow can the driver be slower than the car?
• 6. The Power of DiversificationBecause of the unknown future, diversification is the only practical solution.
• 7. Investing in the World's Great Companies via Mutual fundsThe best vehicle for long-term investing.
• 8. Have an Intelligent Withdrawal StrategyHow to have the best of both worlds: 100% equities + guaranteed income.
• 9. Volatility Isn't RiskKeep your eye on the man, not the dog.
• 10. Sequence of ReturnsDuring withdrawals the order of returns matter.
• 11. Invest & ForgetBuy and hold is the best strategy.
• 12. Shares, Not DollarsPart ¼ of "Shares"
• 13. Auto-Reinvest for More SharesPart 2/4 of "Shares"
• 14. RebalancingPart ¾ of "Shares"
• 15. Dollar Cost AveragingPart 4/4 of "Shares"
• 16. Risk vs InflationLearn the 5-minute risk seminar.
• 17. Taxes & InflationAnything less 6% then with inflation and taxes you’re losing money.
• 18. Focus on the Future Value of Lump-SumsFocus on the tree, not the seed.
• 19. Lifeboat DrillsLearn how to prepare your investment clients.
• 20. Three Retirement RisksLongevity, inflation, volatility.
• 21. Emergency Funds & Two Short-Term UsesWhat fund to use.
• 22. Avoid the A-Share Upfront Sales Charge in IRA ContributionsA simple "trick".