Statistical Significance | Wisdom, Wealth, and Wellness
Statistical Significance | Wisdom, Wealth, and Wellness
Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky of Satovsky Asset Management. And on today’s episode of “Seeking Wisdom, Wealth, and Wellness,” I want to talk about statistical significance.
So, I am a very big believer in investing in equities for the long run, and I’m also a believer in the entire market—that like the 1975 letter Warren Buffett had written to Katherine Graham—I agree with him that the probability of most investors outperforming the simple market indexes is close to nil over time, predominantly because of fees, behaviors, and taxes. But the biggest one is behavior.
So when I talk about statistical significance and they say, well, Warren Buffett is an outlier, well, there is statistical significance by academic research and in the execution of the idea of leaning towards certain factors. If you can handle what’s called tracking error that there’s statistical significance for the sustainable and persistent execution of cheap, small, and profitable companies establishing a tremendous amount of value which is basically built on the principles that Warren Buffett and Charlie Munger have been executing for half a century and blending it with Jack Bogle’s idea of indexing of keeping your cost down. You can marry the two and add tremendous value over a long period of time (if people were educated and understood it) on your own path to Wisdom, Wealth, and Wellness.
Have a great day.
Get the Latest Wealth Insights, Delivered.
Disclosures
This blog post is not intended to be, nor should it be construed or used as, an offer to sell, or a solicitation or offer to buy any securities or interests in any strategy offered by Satovsky Asset Management, LLC (“SAM”). SAM is a registered investment advisor with the Securities and Exchange Commission – for more information see www.adviserinfo.sec.gov. Please remember that different types of investments involve varying degrees of risk, and that past performance is not indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the strategies recommended or undertaken by SAM) will be profitable. Market index information shown herein is included to show relative market performance for the periods indicated and not as standards of comparison. The market volatility, liquidity and other characteristics of SAM’s portfolio composition are materially different from the securities listed on public market indices. Market index information was compiled from sources that SAM believes to be reliable. No representation of guarantee is made hereby with respect of the accuracy or completeness or such data. Opinions are as of date of video and are subject to change. A copy of SAM’s current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. SAM undertakes no duty to update information presented herein.
Further Reading
Market Timing | Q3 2025 Quarterly Market Commentary Video
Beyond the Headlines | Q2 2025 Quarterly Market Commentary Video
Performance Anxiety
