From Information to Wisdom: A Savant Investment Professional’s Perspective
In today’s information age, data is abundant and readily accessible. An internet search can yield thousands of results on any topic within seconds. However, this sheer volume of information presents both opportunities and challenges. While efficiency in accessing information has improved dramatically, the accuracy and quality of that information are often questionable. As chief investment officer at Savant, I aim to transform this ocean of information into actionable wisdom for our clients. This process involves distinguishing among information, knowledge, and wisdom and applying our expertise to help provide truly wise counsel.
The Distinction: Information, Knowledge, and Wisdom
Information is the raw material of the digital age. It encompasses facts, data points, and figures that, while valuable, lack context or meaning in isolation. The investment world is a playground for quants and statisticians, who can affirm that information or data tells you nothing without first asking the right questions. As the saying goes, “The numbers will confess to anything if you torture them enough.”
Knowledge, on the other hand, represents a deeper understanding of what data means. Expertise in investment management, for example, is not just about knowing historical stock returns or economic indicators. It is about understanding the dynamics of markets, the behavior of asset classes, and the principles of risk and return. Knowledge is acquired through experience, study, and a commitment to lifelong learning. At Savant, we don’t believe the book of investment knowledge is closed, and our evidence-based philosophy demands that we constantly seek answers, which may evolve over time.
Wisdom is the application of knowledge to real-world situations, often requiring sound judgment, ethical considerations, and a behavioral understanding of human tendencies. Wisdom is especially critical in investing, where information is incomplete and the proverbial crystal ball doesn’t exist. It also involves action—making the right decisions, educating others, and guiding clients in ways that align with their long-term financial goals. A wise person acts according to knowledge. Knowing the right thing but failing to carry it out is no good. Many smart people are unwise. We seek to help people be wise with their finances.
Information Overload and the Challenges of Big Data and AI
The rise of big data and artificial intelligence has amplified the availability of information. However, these tools often prioritize speed over depth, providing broad but superficial insights. Conventional analyses rely on generalized assumptions, leading to widely held views that may miss critical nuances. In investing, details matter. The “devil is in the details,” and understanding those details can fundamentally change the conclusions drawn from data. As Einstein once said, “Not everything that counts can be counted, and not everything that can be counted counts.”
That is why, at Savant, we prioritize asking the right questions, challenging conventional wisdom and platitudes, and digging deeply into each situation’s specifics. We embrace technology in many ways but are not ready to rely on it to understand all the right inputs and the uniqueness of each client’s situation.
Wisdom in Action: The Role of Trusted Advisors
The true hallmark of wisdom is its application. At Savant, our trusted financial advisors embody wisdom by guiding clients through the complexities of investing and aligning their investments with their financial plans. They help clients select the proper portfolios, educate them on the principles of disciplined investing, and, most importantly, support them in staying the course during turbulent times. Wise investment counsel requires knowing the client and their financial plan, then matching their time horizon, temperament, desires, and preferences to a portfolio that fits their objectives and goals.
We don’t believe in cookie-cutter portfolios. Instead, we scale our expertise to help impact as many lives as possible while maintaining a tailored approach.
Our advisors recognize the difference between knowing and doing. They understand that even the best-laid plans require steadfast execution and behavioral discipline. By fostering trust, providing education, and offering ongoing support, their goal is to empower clients to become wise investors and work toward their ideal futures.
From Information to Wisdom
At Savant, we are committed to transforming information into wisdom. By leveraging expertise, challenging conventional wisdom, and focusing on systematic decision-making through an evidence-based approach, we help provide clients with the guidance they need to support their financial goals. I love markets and will always be fascinated by their constant evolution, but what excites and fulfills me most is transforming information into wisdom designed to help improve others’ lives.
C. Zach Ivey
Chief Investment Officer
CFA®, CFP®, MBA