The Golden Ticket Trap
Hill Investment Group clients know our mantra Take the long view. It’s short hand for having a well-thought-out plan that’s executed consistently over time, a globally-diversified low-cost portfolio, and a long-term outlook on investment performance.
Jim Parker, Vice President at Dimensional Funds—one of our strategic partners—recently wrote a short and sweet (pun intended) article titled “The Golden Ticket Trap.” What’s that? Many investors behave a bit like the young boy Charlie in a popular children’s story about a chocolate factory, misguidedly pinning the hope for riches on finding one of a handful of golden tickets hidden among millions of candy bars. It’s the same premise behind the ever-present magazine headlines of “The 5 Hottest Stocks” and “What to buy NOW!”
This is where the Hill haystack analogy comes in. Wall Street pontificators and investment magazines try to sell the idea that they know where and how to find the needle in the haystack. Hill clients and followers know that the best path for long term success is to simply buy the entire haystack in a low-cost, tax-efficient manner, rebalance regularly, and get on with your life.
A quick glance at the article will likely reaffirm your belief in Taking the long view and illustrate that you already own the real Golden Ticket. You can view a PDF of the article here.