Principles Of Sound Investing

Here at Whittenburg Wealth Partners, we use mathematically-based allocations and analyses, knowledge of market history, and discipline to deliver for our clients.

Below you will find 8 of our guiding investment principles.


  1. There is no such thing as “short-term investing.” The phrase “short-term investing” is an oxymoron. Investing is a fundamental commitment of your capital to the pursuit of the greater goals in your life.
  2. Valuation still matters. Stewardship of wealth requires a careful examination of value. Markets can be subject to fads and hyperbole. If you begin to believe “it’s different this time,” you are wrong.
  3. Market timing doesn’t work. Moving into and out of markets based on any anticipated changes in price as opposed to fundamental changes in value is speculation, not investing. Peter Lynch, famed investor has said, “Far more money has been lost by investors anticipating corrections than has been lost in corrections themselves.”
  4. Market indexes and benchmarks can tell a much-distorted story. The performance of an unmanaged index is not indicative of the performance of any particular investment. The success or failure of your investment plan should be measured only by whether it is meeting your long-term goals over a full market cycle, or not.
  5. Return vs. risk. If you don’t see or understand the risk, keep looking; it’s there. We design portfolios in advance of risk, not in reaction to it.
  6. Optimism is key. Investing can be challenging; there always seems to be unsettling events on the horizon. We are always vigilant to threats to our capital and always seek to protect against undue risk. More importantly, we recognize the powerful upside to human ingenuity and innovation over time. As Winston Churchill said, “I am an optimist. It does not seem too much use being anything else.”  
  7. Information is not knowledge. Today we have widespread access to economic forecasts, analyst’s opinions, and political commentary. The vast majority of this information can be irrelevant, conflicting, or biased. Knowledge, unlike information, comes from sorting through data and applying it quietly and carefully to a specific situation.
  8. The traditional rules of investing are still true. While they can be adjusted periodically to fit some of the finer points of the current economic environment, you should never abandon the core principles of diversification, sound values, patience, following a sound plan, and maintaining a long-term perspective.