515-979-5140 bill@streffwm.com

Investment Philosophy

 

Our investment philosophy can be summed up in four simple words: Capture the Market Return.

This incorporates three basic strategies:

1) Stay invested in all market environments
2) Avoid investing in ‘active’ management / funds
3) Keep investing costs to a minimum.

No one can control the markets. But investors can control what they pay to invest. It may be eye-opening to see the difference costs can make to an investor’s long-term success.

“The grim irony of investing, then, is that we investors as a group not only don’t get what we pay for, we get precisely what we don’t pay for. So if we pay for nothing, we get everything.”

–John (Jack) Bogle, Founder, Vanguard, from The Little Red Book of Common Sense Investing

William Streff, CFP®, CEBS
President, Streff Wealth Management

Our investment philosophy can be summed up in four simple words: Capture the Market Return.

This incorporates three basic strategies:

1) Stay invested in all market environments
2) Avoid investing in ‘active’ management / funds
3) Keep investing costs to a minimum.

No one can control the markets. But investors can control what they pay to invest. It may be eye-opening to see the difference costs can make to an investor’s long-term success.

“The grim irony of investing, then, is that we investors as a group not only don’t get what we pay for, we get precisely what we don’t pay for. So if we pay for nothing, we get everything.”

–John (Jack) Bogle, Founder, Vanguard, from The Little Red Book of Common Sense Investing

William Streff, CFP®, CEBS
President, Streff Wealth Management

More on investing…

Conventional investment approaches are based on trying to predict the future direction of the economy, the stock market, or interest rates. Yet, no one can know the future—and if an investment person could predict the market’s future direction, why would he/she share that knowledge for free?

Many people learn this the hard way. They may seek out investment insight from cable news programs that feature Wall Street experts who appear to know something valuable, or from other sources. But that fact is, there’s no shortcut to growing wealth.

“A lot of very smart people set out to do better than average in securities markets. Call them active investors. Their opposites, passive investors, will by definition do about average. In aggregate their positions will more or less approximate those of an index fund. Therefore, the balance of the universe—the active investors—must do about average as well. However, these investors will incur far greater costs. So, on balance, their aggregate results after these costs will be worse than those of the passive investors. So that was my argument – and now let me put it into a simple equation. If Group A (active investors) and Group B (do-nothing investors) comprise the total investing universe, and B is destined to achieve average results before costs, so, too, must A. Whichever group has the lower costs will win. The bottom line: When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds.”

— Warren Buffett, CEO, Berkshire Hathaway, from the 2016 Berkshire Hathaway annual letter to shareholders

© 2019 Streff Wealth Management
All Rights Reserved.

Disclosures

Streff Wealth Management

8805 Chambery Blvd.
Suite 300-132
Johnston, IA  50131

Tel: 515.979.5140
Fax: 833.817.7322

 

© 2019 Streff Wealth Management
All Rights Reserved.

Disclosures

 

Streff Wealth Management

8805 Chambery Blvd.
Suite 300-132
Johnston, IA  50131

Tel: 515.979.5140
Fax: 833.817.7322