Over long periods of time the cumulative returns of various segments of the equity market don’t tend to be meaningfully different. While they may end up in a similar spot over time, they often take very different paths to that same destination as shorter-term performance can vary tremendously. In the video segments below, Brad Swinsburg outlines how Smith + Howard Wealth Management incorporates this cyclicality of returns into their investment approach.
Same Return, Different Paths | Third Quarter, 2023
Last quarter, we briefly touched on the idea that labels placed on stocks like “growth” or “value,” and size distinctions such as “large” or “small”, do not determine long-term expected returns. In this video, we’ll focus on why we dedicate so much time analyzing and thinking about these labels and highlight how they factor into our investment approach.
Using our proprietary valuation scoring methodology and concentrating on the resulting outliers helps us embrace the cyclicality of returns and see them as an opportunity rather than something to be feared. Watch our video demonstrating the importance of having this mindset and how it factors into our efforts to add value for clients.
As always, we are available and ready to answer your questions on these or other topics related to investments and financial planning. Please call us at 404-874-6244 or email us here.
Read more from our third quarter CFO Report, here.
Unless stated otherwise, any estimates or projections (including performance and risk) given in this presentation are intended to be forward-looking statements. Such estimates are subject to actual known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. The securities described within this presentation do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in such securities was or will be profitable. Past performance does not indicate future results.