The Principles of Evidence-Based Investing

Evidence-based investing is a style that bases choices on the use of data-driven analysis and empirical evidence. The foundation of evidence-based investing is that investment decisions should support by objective, verifiable information, and data rather than relying on biased opinions or subjective judgments.

Some of the key principles of evidence-based investing include:

  1. The use of empirical data and analysis to inform investment decisions
  2. A focus on long-term results rather than short-term performance
  3. A commitment to diversification and risk management
  4. A reliance on evidence-based investment strategies, such as index investing and factor-based investing
  5. A rejection of speculation and market timing

Overall, evidence-based investing aims to assist investors in making more informed, logical investment decisions based on objective evidence and statistics rather than personal opinions or biases. Evidence-based investors rely on logic and statistics. They don’t try to forecast the future.

Here’s what you need to know to become an evidence-based investor:

Evidence-Based Investing

Infographic Source:

Liked it?


Rate and Share it!

Please feel free to share this infographic in your blogs, websites and social media

User Rating: Be the first one !

Check Also

Saving Options for Senior Citizens

What are the Best Saving Options for Senior Citizens

As people age and reach retirement age, their financial needs and priorities often shift. Many …

Leave a Reply

Your email address will not be published. Required fields are marked *