Introduction

What’s your edge?

What’s your edge?

Digital innovation has proliferated access to financial information to the point where anyone with a smartphone, a few apps and real-time news and data feeds can be like a pro trader. But who wants to do that? And do you need to?

The upshot is that financial and other information comes at us faster and in greater volumes than ever. We no longer have to wait for the six o’clock TV news to know what happened in markets today; our apps notify us in real time.

But amidst this era of always-on news flow, for most of us two questions come to mind and they are not about the access to real-time information.

1. The first question is can you actually pull all the information together and have a successful investment experience?

Dealing with that question starts with reflecting how much of an investment “edge” you get by having access to information that is so freely available.  As indicated by recent studies conducted by S&P, the experts are struggling with this.  In the US the majority of active asset managers underperformed their stated benchmarks over 3, 5 and 10 years.  And the news is the same in Australia.

So against that background it’s not clear that adding the latest market-minder app to your smart phone is necessarily the path to success.

2. The second question to ask is what you are trying to achieve? Are you trying to “beat” the market by finding mistakes in prices and timing your entry and exit points? If so, given the competition above, you might want to review your information budget.

For most of us investment is a means to an end. We want to invest for a better life, to put our children through school, provide for loved ones, give ourselves a good chance of achieving financial independence or pass on a legacy to those that are important to us.

In this context, the most relevant information is about our own lives and circumstances.

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This is the value a real financial advisor can bring — not in trying to second-guess the market or using forecasts to gamble with your money — but in understanding the life situation of each person and what each of them needs.

So our limited resource is not speed or access to information, but our own time. We only have a short window to live the lives we want. And that means we should start any investment plan with understanding ourselves, then secure the long-term capital market rates of return as efficiently as possible.

At WARR HUNT, this is exactly what we do for you – all day, every day – our focus is on you, your goals and the plan to achieve them.

That’s where the edge is.