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What the Experts Say

Many of the convictions Principia holds are likewise strongly supported by other industry experts. We've organized many of their comments about the most critical issues into the following categories. Click on a topic of interest to view "what the experts say."

Index Investing

A wealth of academic and industry research confirms the benefits of an indexed approach to investing.

Failure of Active Management

Active Mangement, the traditional way to manage money, has consistently failed to beat the market yet led to excessively high costs, high risks, poor returns, and unnecessary taxes.

Past Performance

Past performance is not an indication of future returns. This is a line in most investment products prospectus that investors would be well served to memorize.

Market Timing

While many have tried, few to none have ever been consistent in predicting short term market movements. In fact, this futile exercise only adds risk, cost, stress, and frustration.

Asset Allocation

Frequently misunderstood, asset allocation should be a cornerstone of every investors investment program. This is the most important decision investors make or more often fail to make.

Global Diversification

Effective global diversification maximizes return, controls risk and lets you sleep well at night.

Investment Risk

Harnessed effectively, risk allows people to achieve their ideal future. Used improperly, risk causes people to lose their fortunes or suffer from pointless insomnia.

Long Term Strategy

History repeats itself. The prudent investor recognizes this certainty over the long term. Investors benefit from strategies based on unchanging maxims.

Investment Costs

If you spend less you will keep more. Eliminating needless and excessive cost is the single most assured method of increasing your returns.

Taxes & Investing

The only things guaranteed in life are death and taxes. Experts confirm the importance of putting tax management at the center of the investment process.

Random Thoughts on Investing

Random thoughts on investing.