Captain’s Log

Why Doing Less Often Leads to More: The Hidden Cost of Constant Trading

There is an old saying in investing: “Portfolios are like a bar of soap—the more you touch them, the smaller they get.”

It is a funny image—but it is also true. The more investors try to “help” their portfolios by jumping in and out of the market, the more damage they tend to do.

A recent Fidelity Investments study drives this point home. From January 2000 through 2023, do-it-yourself investors underperformed a diversified portfolio by more than 2% per year on average. That difference might not sound huge, but compounded over time, it can mean hundreds of thousands of dollars less in long-term growth.

Why the gap? Because DIY investors often let emotion dictate their decisions—buying after markets rise and selling after they fall. It is human nature, but it is also a recipe for underperformance.

The Illusion of Market Timing

Trying to buy and sell at the “right” time feels smart in the moment. You might think, “I’ll just get out until things settle down,” or “I’ll jump back in when the market starts going up again.” The problem is, no one consistently knows when those moments are.

Some of the market’s best days often come right after the worst ones—and those who step out to avoid volatility frequently miss the recovery. Over the long term, missing even a handful of those best days can drastically reduce returns.

The Anchor Wealth Approach: Slow, Steady, and Strategic

At Anchor Wealth, we take a vastly different approach from the do-it-yourself mindset. Instead of reacting to every headline or market move, we rely on a disciplined quarterly review process.

Each quarter, we:

• Assess whether your allocation still matches your goals and time horizon.
• Review your portfolio and make thoughtful, gradual adjustments only when necessary.

In between, we maintain a consistent process of annual rebalancing, which means selling portions that have grown beyond their target size (“the winners”) and adding to those that have fallen behind (“the laggards”). This keeps risk in balance and helps capture opportunities—without chasing short-term trends.

Patience Wins Over Time

The Fidelity study reinforces what decades of data already show: patient, diversified investors outperform those who try to time the market. It is not about guessing what happens next; it is about building a plan and sticking to it through every market season.

So, the next time you are tempted to “make a move” with your portfolio or buy the next hot stock on your own, remember that bar of soap. The more you touch it, the smaller it gets.

At Anchor Wealth, we believe the best results come not from reacting, but from remaining steady—and letting your plan do what it was designed to do.

Adam Ludwig, CEO/Wealth Advisor

Smart Ways to Save Before Christmas

The holidays have a way of sneaking up on us. One minute, it’s pumpkin spice season, and the next, you’re wondering how your Christmas budget disappeared faster than the last cookie on the plate. It’s easy to get caught up in the spirit of giving, but come January, those credit card bills can put a damper on your financial goals for the new year.

The good news? With a little planning and a few smart strategies, you can enjoy the holidays and protect your financial peace. Here are some practical, real-world ways to save before Christmas so you can celebrate without the post-holiday stress.

CLICK HERE to finish reading Chris Perry’s Blog for November.

Adam’s Nightstand

At our last AWM quarterly huddle, I challenged our team members to read one of these five books over the next quarter:

• Who Moved My Cheese? by Spencer Johnson
• The One Minute Manager by Ken Blanchard and Spencer Johnson
• The Richest Man in Babylon by George Samuel Clason
• The Greatest Salesman in the World by Og Mandino
• As a Man Thinketh by James Allen

This marks the beginning of our AWM Learning Library, a growing collection of books for team members who want to learn and grow in the area of personal development.

I wanted to share this list with all of you in case you would like to join us on our learning adventure.

Friendsgiving Feast: AWM’s Annual Potluck Success!

The Anchor Wealth Management team celebrated the season of gratitude with our annual AWM Friendsgiving Potluck! It was an excellent opportunity to step away from our desks, share some fantastic food, and connect on a personal level before the holiday season rush officially begins.

From traditional turkey and stuffing to unique family recipes, the spread was incredible, proving once again that our team members are just as talented in the kitchen as they are with financial planning. The event was a true reflection of the community and camaraderie we value here at AWM.