Cultivating health and wealth

Summer is drawing to a close and children are returning to school, which reminds me that time is passing swiftly. The realization has set in that I now have a limited window to accomplish the goals I had set out for this year. Among these goals was an honest intention to enhance my health, which prompted me to read a book on health and longevity.

This book has led me to recognize two pivotal pillars in life: financial prosperity and physical well-being. Despite their significance, these topics often become confusing due to the vast amount of information, advice, and articles that frequently yield conflicting viewpoints.

So, it is not surprising that the recent bestseller “Outlive: The Science & Art of Longevity,” by physician Peter Attia, has garnered significant attention. Attia delves into contemporary scientific investigations related to aging, where he unveils strategies that not only extend lifespan but also enhance overall well-being. Most notably, discernible parallels surface between his discourse on health and the investment philosophy we champion as a firm.

Attia’s insightful observations regarding health encapsulate the following principles:

1. The absence of a universal “magic solution,” as individual nuances play a pivotal role – i.e. what works for one does not necessarily work for another.
2. The elusiveness of quick fixes – i.e. they never work.
3. The proactive approach of prevention almost always outweighs reactive treatment.

In a similar vein, within the investment landscape, we uphold analogous principles:

1. Customized investment solutions tailored to individual aspirations and risk profiles supersede one-size-fits-all strategies. The investment plan that yields optimal outcomes is one that resonates with an individual’s unique circumstances.
2. “Quick wins” are infrequent and not a sustainable strategy. Historical world stock market average returns have consistently hovered around 10%, yet individual years often diverge considerably from this standard (take 2021 and 2022 for example). Furthermore, harnessing the compounding effect demands a sequential trajectory. Effective investment, akin to cultivating good health, mandates consistent
   dedication and adherence over time. An article I wrote in 2019 highlighted the often-overlooked significance of time in markets as a key to investment success and risk management. Both wealth and health are rooted in habits, not mere outcomes.
3. Investors possess the agency to proactively shape their investment strategy by embracing uncertainty, constructing well-thought-out portfolios, and devising comprehensive plans that encompass a range of potential scenarios. The optimal potential for returns emerges when markets factor in risk and investors embrace it.

In parallel to Attia’s role as a medical interpreter, proficient financial professionals operate additionally as coaches and teachers, translating intricate financial concepts into practical implications for their clients. This process, grounded in empirical evidence and practicality, assumes both scientific and artistic proportions as it adapts to the distinctive needs of each client.

For over twenty years, ATB Investment Management (ATBIM) has been dedicated to constructing portfolios that achieve elevated returns with diminished risk. Despite the challenges posed by market fluctuations, our portfolios have generated compounded wealth since inception.

At ATBIM, our primary objective is to provide clients with exceptional investment experiences and help them attain their objectives. While unforeseen setbacks and events are inevitable, much like in 2022, our hope is that by sharing parallels between what we do and other professions, the clarity surrounding our approach becomes more pronounced, making it easier to feel confident about your financial plan.

As always, we are working hard to preserve and grow your wealth. If you have questions about anything referenced here, or your own portfolio, please do not hesitate to reach out.

¹  Compass Portfolios Series O overall performance

Numbers are annualized returns. Performance is calculated including income and capital gains, and net of management fees.