Investment Philosophy
Disclaimer
Description
The Efficient Market Hypothesis (EMH)
The Efficient Market Hypothesis, or EMH, is a financial theory that suggests all available information about investments such as company news, economic data, or trends is already reflected in the prices of stocks and other assets.
In simple terms: the market is always one step ahead. By the time you or anyone else hears good or bad news, it's likely already been factored into the price of the investment. This means it’s incredibly challenging, if not impossible, to consistently ‘beat the market’ by picking individual stocks or timing when to buy or sell. Many professional fund managers try to do this (active management), but research shows that most don't outperform the market over the long term, especially after fees (as shown above).
Why this matters to you
If markets are generally efficient, attempting to time investments or select individual "winning" stocks becomes a costly gamble. Over time, the odds tend to favour investors who take a disciplined, evidence-based approach - rather than trying to outsmart the market.