{"id":337,"date":"2009-07-12T21:17:00","date_gmt":"2009-07-12T21:17:00","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=337"},"modified":"2009-07-12T21:17:00","modified_gmt":"2009-07-12T21:17:00","slug":"la-insignificancia-y-la-importancia-de-nuestra-vida-inversora","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/la-insignificancia-y-la-importancia-de-nuestra-vida-inversora\/","title":{"rendered":"The insignificance and the importance of our investment life."},"content":{"rendered":"
The age-old dilemma: Do shares outperform fixed-income investments in the long term, or is the power of compound interest simply unbeatable? We have all heard and read passionate advocates on both sides. They represent different \u2013 yet equally dogmatic \u2013 approaches to investing. As is almost always the case, the truth is not to be found in black and white, but in shades of grey viewed with perspective:<\/p>\n

http:\/\/s.wsj.net\/media\/swf\/main.swf<\/p>\n

Having watched this rather simple and na\u00efve WSJ video, I think we\u2019re closer to finding an answer to the dilemma: Past data is simply insufficient to determine with precision and certainty which strategy will bring us the greatest financial success in the future. It would be far too easy. But there is something that this video and most discussions about investing in fixed income and equities overlook when they talk about time horizons, and it is something as obvious and yet as vital as our investment journey<\/span>, which we discussed back in the first quarter of 2008 in Kaizen: Quality control for our investments<\/a>. Statistics are of no use to us whatsoever (assuming they were reliable and sufficient, which they are not), beyond our investment horizon. And this may be as short as the medium, short or very short term.<\/p>\n

I think the sentence that best expresses this concept is the one we wrote in our article entitled RF vs RV<\/a>: \u00abInvesting is nothing more than small segments of very long-term charts.\u00bb <\/span>And that covers everything, including ruining that investment journey by heading in the wrong direction. There are no second chances; we have only one investment journey in our lives. And no one knows how long their segment will last on a 150-year chart of dubious accuracy. From here on, let the heated debate continue over who beats whom. Although we\u2019ll surely all be beaten by our own arrogant ignorance, which will lead us to seek ways to avoid the effort of carrying out the an assessment of our investment journey<\/a>.<\/div>","protected":false},"excerpt":{"rendered":"

El eterno dilema: \u00bfLa bolsa bate a la renta fija a largo plazo o por el contrario el poder del inter\u00e9s compuesto es imbatible? Todos hemos o\u00eddo y le\u00eddo vehementes defensores de uno y otro lado. Son como maneras distintas, y sin embargo integristas, de vivir las inversiones. Como casi siempre, la verdad no la […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-337","post","type-post","status-publish","format-standard","hentry","category-sin-categorizar"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=337"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/337\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}