All studies that we have seen reveal that average investors obtain only a fractional amount of the returns obtained by the indices over any reasonable period of time. A recent study done by Dalbar and Associates for the twenty years ended 12/31/07 reveals that the average bond investor made only 21% of the Lehman Aggregate Bond Index: 1.55% vs. 7.56%. The major reason for this poor relative performance is behavioral patterns concerning market decisions that have remained the same over the years. These actions are well documented by such economists as Richard Thaler, Andrei Shleifer, Hersh Shefrin, & Robert Shiller. Despite all the studies on these matters, human behavior seems never to change. All of us in the business who have good long-term investment results (maybe 25% of the universe) literally beg our clients and advisor partners to “stay the course.” An investor’s real challenge is to discover an advisor that can perform well.

But sudden drops in value, articles by so-called experts, and a list of the following investment behavioral mistakes seem always to override those of us who have “proven” ourselves both in good times and bad. They are as follows:

1. Overconfidence
2. Intuitive judgement
3. Herd behavior
4. Heuristic bias
5. Frame dependence
6. Myopic fear of loss
7. Reliance on Wall Street research

After already spending over 30 years in the investment business, we associated ourselves with Central Plains Advisors on January 1, 1991. The following reflects what a client’s performance would have been over the 18 years that we have had the opportunity to work with our clients. These percentages and dollar amounts are after our highest fee chargeable, but before taxes.

Bison Bond I Total Returns

Period	Annual Compounded Total Return	Value of $100,000
January 1, 1991 - December 31, 1991	22.5%	$122,470
January 1, 1991 - December 31, 1992	14.3%	$130,737
January 1, 1991 - December 31, 1993	15.8%	$155,407
January 1, 1991 - December 31, 1994	13.4%	$165,570
January 1, 1991 - December 31, 1995	21.2%	$261,187
January 1, 1991 - December 31, 1996	19.0%	$283,911
January 1, 1991 - December 31, 1997	19.7%	$352,730
January 1, 1991 - December 31, 1998	19.1%	$404,405
January 1, 1991 - December 31, 1999	13.8%	$320,527
January 1, 1991 - December 31, 2000	15.3%	$416,968
January 1, 1991 - December 31, 2001	13.4%	$398,038
January 1, 1991 - December 31, 2002	13.7%	$468,729
January 1, 1991 - December 31, 2003	12.8%	$480,588
January 1, 1991 - December 31, 2004	12.7%	$536,880
January 1, 1991 - December 31, 2005	12.3%	$571,240
January 1, 1991 - December 31, 2006	11.3%	$553,189
January 1, 1991 - December 31, 2007	11.0%	$593,074
January 1, 1991 - December 31, 2008	11.4%	$693,363
January 1, 1991 - December 31, 2009	9.6%	$571,262
January 1, 1991 - December 31. 2010	9.5%	$622,623

                    Highest single year performance:        1995        +57.75%
                    Lowest single year performance:         1999         -20.73%

This is what hiring a good manager and staying the course can do for one who is willing to assign full investment discretion and concentrate on things that are not in his own area of expertise. We, for example, can’t build a house, perform surgery, teach mathematics, or farm a piece of ground. And you know what? We admit it and leave it completely to others. Can you do the same?

Disclosures: This website does not constitute a solicitation to residents of any jurisdiction where the program mentioned may not be available. Information in this website is taken from sources believed to be reliable but its accuracy cannot be guaranteed. Any opinions stated are intended as general observations, not specific or personal advice. This publication is not intended as personal investment advice. Please consult a competent professional and the appropriate disclosure documents before making any investment decisions. There is no foolproof way of selecting an Investment Advisor. Investments mentioned involve risk, and not all investments mentioned herein are appropriate for all investors.

For more information on Central Plains Advisors, please call 888-735-2724 for a copy of our Form ADV II, available at no charge upon request. Officers, employees and affiliates of Central Plains Advisors may have investments in funds discussed herein and others.

The individual account performance figures reflect the reinvestment of dividends and capital gains, and are net of maximum Central Plains Advisors fees. Past performance may not be indicative of future results and does not guarantee positive returns. The performance results for 1991 through 2009 have been independently compiled by CPAs from information provided by Central Plains Advisors.

Bonds are subject to certain market risks, including loss of principle. Any illustrations should not be construed as an indication of future performance, which could be better or worse than the period illustrated. The period from 1991-2005 was one of generally rising bond prices. The period from 1991-1999 was one of generally rising stock prices. The period from 2000-2002 was one of generally declining stock prices. The period of 2003-2006 was one of generally rising stock prices. The period of 2004-2007 was one of rising stocks and bonds. The year 2008 experienced a stock market crash and average bond market. 2009 experienced a strong stock market and positive bond market. 2010 was a good year for both stocks and bonds.

Past performance is no guarantee of future results.