One Tough Test

One Tough Test

Posted by: Tad Weiss on April 7, 2015, Latest News

According to Business Insider, the most recent results for the Chartered Financial Analyst® (CFA) Level 1 test were released in January, and 44% of the 47,175 test-takers passed the exam. Before you think that is a low figure, realize that the 44% pass rate is higher than usual. The CFA exam is one tough test!

The CFA mark has become the most respected and recognized investment designation in the world. The curriculum covers concepts and skills for investment analysis and real-world portfolio management skills. The exam consists of three parts, and the next level can only be taken once the prior one is passed. Fewer than 20% of candidates pass all three test on the first try, and on average it takes four years to complete the program.

Matt Wright, CFA charterholder at Modus Advisors, is in the 20%. Matt earned the CFA designation in 2008 after passing all three exams on the first try. He has been managing portfolios for clients for 8 years, and heads up the portfolio management team at Modus Advisors.

Achieving solid, long-term investment results is not easy. It requires education, discipline, and consistency. There are literally thousands of options to choose from. The ability to research and pick good investments is important, but it also is critical to know what to avoid. Successful investing requires knowledge of finance and control of your emotions. Investment plans can be ruined by letting our emotions get the best of us, just as they can be sabotaged through poor analysis.

When looking for a financial advisor/investment manager, ask to see their investment philosophy in writing. If it isn’t written down, it will probably change with the wind, to the next investment fad that comes along. Also ask for the manager’s credentials, including his experience and educational background. A well-constructed investment strategy combined with a high level of education and experience will increase the likelihood that you’ll be happy with your advisor, for the long-term. That satisfaction is what we strive to achieve for the clients of Modus Advisors.

Tad M. Weiss, MBA, CFP®

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The commentary on this website reflects the personal opinions, viewpoints and analyses of the Modus Advisors, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Modus Advisors, LLC or performance returns of any Modus Advisors, LLC client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Modus Advisors, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.

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