FMD Capital Management

Posts Tagged: investor psychology

Great Investment versus Great Timing

Written by David Fabian, June 05th, 2017

The investment universe is littered with articles touting the advantages of various funds or strategies.  I should know.  I have written for the last five years about the characteristics of ETFs and closed-end funds that we consider for our clients.  Some pass my rigorous test, while others are weeded out through careful analysis.

Throughout this time, I have realized it’s easy to compare two or three funds in a vertical category and dissect their merits.  Some will stand out based on costs, while others may promote index methodology, tax efficiency, or security selection as their primary benefits.  Read more

Investment Advisors Aren’t Worth The Money

Written by David Fabian, April 19th, 2017

I had a conversation with a prospective client the other day who called me inquiring as to what we do.  I gave him the typical run down that we are a fee-only investment advisor specializing in ETF portfolios.  In other words, we provide discretionary management of client accounts using low-cost investment tools.

His response {paraphrasing}: “Mr. Fabian, I know a CFO of a big publicly traded company.  He told me they did a big study about the use of investment advisors and that they aren’t worth the 1% fee.  That all you need to do is buy ETFs to reduce the drag of expenses on your portfolio.  What do you have to say to that?” Read more

Four Years Ago…

Written by David Fabian, March 15th, 2017

Four years ago, we set out to build something special.  The founding of FMD Capital Management became not only a professional achievement, but also the start of a journey to find a better way to manage money.

This week marks the fourth anniversary of our firm’s origin.  We started this company with the commitment to work harder than other investment advisors.  To be advocates for our client’s best interests and to share our knowledge in real-time.  It’s with great pride that we continue that same bedrock promise to this day. Read more

Knowing When To Do Nothing

Written by David Fabian, February 27th, 2017

There is a misplaced psychology among active investors and many advisors that they must always be doing something with their portfolio.  It’s the notion that activity leads to profitability or that instant gratification is a requirement of sticking with any process for more than a few months.

This emotional response is compounded when you are paying someone to look after your account with very little physical action – i.e trading.  It’s easy to think to yourself that “I don’t need to pay this person to sit there, I can do that myself for free”. Read more

The Value Of Incremental Steps In Your Investment Portfolio

Written by David Fabian, February 03rd, 2017

Investing is a stressful endeavor – plain and simple.  You never have all the facts to make a perfect decision.  You are only able to see the right answer with the benefit of hindsight.  Things are always slow on the way up and frenetic on the way down.  This all leads to emotions taking their toll on every single one of us.  Read more