Our investment philosophy is to focus on what we can control: diversification and costs. It is based upon time tested academic research, not our own opinion. We know that it is statistically improbable that any single manager will be able to consistently beat the markets. Managers that try to do so buy and sell securities over and over again, generating trading costs and taxable capital gains.

Therefore, our approach is to passively own the markets through mutual funds that own virtually every stock in a particular market. This approach keeps costs down by nearly 2/3rds versus typical actively managed portfolio, while increased diversification reduces the ups and downs of the markets.