An email from a reader got me thinking about my investment philosophy.

“Often, financial authors, advisors, and experts refer to investment philosophy. What do they mean by this, and what are the principles of forming one?”

I responded, but it was such a good question—and frankly, such a thought-provoking exercise for me to articulate my own investment philosophy—that I wanted to share my response more broadly.

Investment Philosophy Versus Investment Strategy

An investment philosophy is a set of core beliefs that you’ll use to guide your plan and your decisions; it underpins your strategy. An investment strategy, meanwhile, is where the rubber meets the road; it’s the approach you’ll take to executing your philosophy. Perhaps…