Camber favours an investment approach that is evidence-based and built on a process that can last for generations. We implement a systematic approach to investing, that protects emotions or instincts from eroding prudent decision-making.
Our investment philosophy can be summarized as follows:
- Respect the mountains of evidence that highlights how “outperforming the market” is highly unlikely and costly to attempt, and focus instead on capturing market returns efficiently.
- There is no added prize for making money in complex ways. There is elegance in simplicity.
- Maintain a long-term lens. Enduring short-term volatility is the cost paid for higher investment returns. The greatest ingredient to investing is time in the market—so, don’t waste it on the sidelines.
- Thoughtfully allocate between stocks and bonds, and within those, allocate to Canada, US, International, and Emerging markets. The portfolio weightings should be based on investment time horizon, risk tolerance, financial exposures, and individual goals.
- Diversify broadly. The future is unknowable, no optimal solution exists. In this environment, thinking should transition from seeking brilliance to avoiding stupidity.
- Portfolio tilting to small cap and value stocks improves expected returns.
- Rebalance automatically. As prices move a system is required to bring exposures back in line.
- Use low-cost investment vehicles and minimize transaction costs.
- Use tax-advantaged and registered accounts wisely. Implement tax loss harvesting strategies or portfolio overlays to delay payment.
- Meaningful personal financial improvements come more easily and consistently from financial planning than investment returns.