The Science and Art of Investing


There is a lot that goes into managing an investment portfolio .

Art of Investing




Structure Determines Performance

Over 96% of the variation in returns is due to the structure of a portfolio, or, how much you choose to invest in:

  • Stocks versus bonds

  • Small stocks versus large stocks

  • Growth stocks versus value stocks

  • Highly profitable companies


Meanwhile, only a small percentage is due to the actual mutual fund that you select.


1) Art of Investing. 1. Diversification does not eliminate the risk of market loss. 1. Relative price as measured by the price-to-book ratio; value stocks are those with lower price-to-book ratios. 2.Profitability is a measure of current profitability, based on information from individual companies’ income statements.

2) Structure determines performance.Source: Dimensional Fund Advisors study (2002) of 44 institutional equity pension plans with $452 billion total assets.Factor analysis run over various time periods, averaging nine years. Total assets based on total plan dollar amounts as of year end 2001.Average explanatory power (R2) is for the Fama/French equity benchmark universe.


Clear Financial Advisors (CFA) is a Fee-Only Detroit and Ann Arbor fiduciary financial and investment advisor with meeting locations in Ann Arbor / Whitmore Lake, Livonia, Novi, Bloomfield Hills, Troy, Royal Oak, and Franklin / Southfield / Bingham Farms, and serving clients nationally online.


Newsletter members receive:

       Free Clear Investing, Intentional 

       Investing ebook

       Monthly email newsletter


Phone  248.677.1762


Clear Investing Intentional Investing book Robert Schmansky livonia novi ann arbor detroit lansing cfp independent onine financial advice investment manager young professionals
  • RSS - White Circle
  • YouTube - White Circle

© Clear Financial Advisors, LLC | Locations / Contact UsDisclaimer