In this series, Kendall and Justin use a lecture from Dr. Paul Woolley of the London School of Economics to help improve your investment returns.
1. Adopt a Long Term Approach
Kendall and Justin discuss the first of ten steps to help improve your investment returns. The first is to adopt a long-term investment approach.
2. Cap Your Turnover Rate
Justin and Kendall discuss capping your annual turnover rate at 30% and the differences between short term capital gains and long term capital gains.
3. Throw Out the Theory
Kendall and Justin discuss Modern Portfolio Theory and Efficient Market Theory and why they believe you should "throw it out."
4. Choose a Benchmark
Justin talks about what a benchmark is, and why it is important for you to have a benchmark. Kendall discusses growth of GDP and risk premiums.
5. Don't Pay Performance Fees
Justin and Kendall describe what performance fees are and the conflict of interest that comes along with these fees.
6. Beware of Alternative Investments
Justin and Kendall discuss what alternative investments are, reasons they may be recommended to you, and why they can be dangerous.
7. Insist on Total Transparency
Insist on total transparency of agents' strategies. You should be aware of how your money is being invested. Kendall discusses examples of where you would not have transparency.
8. Trade on Public Exchanges
Justin and Kendall give their advice on whether to trade on public exchange or non-public exchange markets.
9. Know All Costs and Fees
Justin and Kendall talk about the importance of knowing all costs and fees before making a decision to invest.
10. Put the Rules into Practice
Justin shares the final step, which is putting these rules into practice.