You might have heard about Stephen A. Jarislowsky before. He is the most famous Canadian(German descent) investor. His total wealth is close to $1.5B thanks to his company “Jarislowsky and Fraser” started at the end of 1950’s which manages investment funds for Governments, Universities, wealthy private individuals, etc…. I’m currently reading his first and only book “The Investment Zoo” he wrote in 2005 about his life and his view on the world of investing. I wanted to read this book because I felt like I didn’t know much about this famous investor.

Jarislowsky and Fraser’s philosophy is simple: Conservative, time-proven principles of fundamental investing, diversification to protect existing capital to achieve long-term growth, and offering low-cost expense to clients (which is quite similar to Vanguard in the states).

I have to admit, I sure am learning a lot from his book. But early in the book there is one thing that really hit me. Not a secret to make you rich quick or anything…just something I thought was really interesting and that I wanted to share.

These days my dad is afraid to go back in the stock market due to uncertainties and I told him to build a great diversified ETF indexing portfolio but he doesn’t want. He’s waiting for the “crap to hit the fan” when Bush administration will leave the office early next year and and then jump in the stock market. But the problem is that no one can’t predict when the “crap will hit the fan” and all this time, he is losing the opportunity on the stock market correction (as for Canada) that is currently going on but no, he prefers to be a “clairvoyant” but he has never been successful at it…. no one can predict the future. Jarislowsky said something great in his book and I have to share it with everyone:

“You have to be optimistic as long as you’re alive. You’re going to be dead for millions of years! There are going to be changes, dangers, and all kinds of uncertainties. changing interest rates, threats to a country’s security, the politicians stealing too much, a change in the direction of politics, terrorism, trade wars… all these things can happen. You cannot foresee any of it, because if you could, you’d never do anything!(in terms of investing your money)”

My friends, no one can predict the market, therefore to buy and hold a great diversified indexing portfolio starting now or at any time, you know the time you started your portfolio up to ten or more years you will have beated more than 80% (being conservative) active investors.