Composite performance through 12/31/2009

The composite performance for the Taylor Frigon Core Growth Strategy and Taylor Frigon Income Strategy data is now posted on the Taylor Frigon website from inception through December 31, 2009.

The Core Growth Strategy is managed according to the time-tested investment philosophy which we have tried to explain to readers in the pages of this blog (in posts such as this one and this one, for instance). It solidly beat broader market indexes such as the S&P 500 and the Russell 3000 in 2009, and also in 2008, as well as for the entire in the period since its inception in January 2007.

We point this out in order to provide our readers with some confidence as they compare the assertions we make versus the many other arguments and theories that fill up the airwaves and bookshelves of financial media stations and the investment sections of local bookstores and libraries.

It is important to stress that we do not believe that any one year -- or even any three years -- is actually enough time to evaluate the true validity of an investment philosophy. There are numerous studies which show that money managers who outperformed the broad market over very long periods almost invariably had periods of three years or longer in which they underperformed considerably. This famous address given by Warren Buffett in 1984, as well as later research on the subject, bears that out.

We have always urged investors to take a long-term perspective, since for most of them what happens over a period of thirty years (or longer) will be far more important.

See the Global Investment Performance Standards (GIPS) for more detail on performance reporting standards, and here for our GIPS disclosures.

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