Choosing the right money manager is one of the most important decisions any client can make. However, investors face a bewildering array of options offering a range of seemingly sensible strategies, many of which ultimately fail to stand the test of time. At Ridgewood Investments, we base all of our strategies on certain principles and values that have stood the test of time and that offer our clients improved odds of favorable outcomes. In forming client relationships and managing investment portfolios, our time horizon is long. We believe that patience and perseverance are major advantages that we and our clients bring to the pursuit of superior long-term results grounded in these timeless principles.
Even Smart People Need Guidance from Capable Advisors
Our homepage features a likeness of Issac Newton, the co-inventor of calculus and the father of Physics – one of the greatest scientific minds in history. Newton has been estimated to have an IQ of approximately 190, yet in his personal investments he lost nearly his entire fortune when he got drawn into a major speculative investment bubble called the South Sea Bubble – initially to enjoy a gain but ultimately to his almost complete financial ruin.
Why is it that many smart people often achieve poor or sub-optimal investment outcomes? The answer lies in human nature. Behavioral Finance is a field within economics and finance that studies the intersection of psychology and financial decision-making. Researchers have learned that the human brain has evolved over the ages to fit a very different environment than we inhabit in the modern world and is therefore not well adapted to make certain types of decisions – including many investment decisions.
Thus, many investors can and do fail to make sound decisions over the long-term. At Ridgewood Investments, we work closely with our clients to develop and stick to a sound long-term investment strategy designed specifically to fit their needs, objectives, and personalities. Our commitment is to understand you as an investor, take an educational and objective stance, and help optimize your long-term results by taking actions on your behalf that should improve your odds over time while avoiding those risks that we deem unfavorable.
Time Value and Investment Performance
Another major reason smart people often fail to achieve optimal investment performance is a lack of time, interest, and focus to do the many activities involved in good investing. In addition, these activities work best when they are pursued with a sustained commitment to excellence.
Achieving optimal investment outcomes typically requires substantial time and attention – a level of focus which is rare even among many professionals and commonly not within the areas of interest or competence for most other investors. This is where Ridgewood Investments can also add tremendous value to our clients. We supply the experience, objectivity and sustained effort needed to improve the quality of your investment commitments and thereby the chances for improved investment outcomes.
A happy byproduct of outsourcing the responsibility to us is that it frees you up to focus on what you like or do best while increasing your odds of a favorable outcome over time.