Investment Philosophy
Our philosophy is broadly to identify and tailor investment strategies to the specific needs of the individual.
This means that whilst some may follow a specific approach based on various conflicting theories, studies and tactics, we accept the value that various approaches can bring to the table, how they differentiate, and how they can be tailored to the needs of our clients.
Key Principles
Whilst the mechanics of the investment strategy may differ, our philosophy abides by the following five key principles:
One size doesn’t fit all
We believe that whilst clients can share similar characteristics the most striking similarity is the uniqueness of individual situations, needs and objectives. As such, we do not believe that one investment strategy fits all.
Risk and Return go hand in hand
A basic assumption of investing is that in order to achieve higher returns, an investor will often need to incur higher risk. Although there is much truth in this statement, risk is multifaceted, and it is important that we understand the various risks and how they can be managed to achieve client objectives.
The impact of risk can vary greatly during an investment journey and whilst we do not believe risk should be feared, we will incorporate various risk management approaches where appropriate.
By incorporating strategies that are tailored to investor needs, we aim to ensure appropriate risks are taken in order to achieve the kind of returns that investors seek.
Don’t put your eggs in one basket
Diversification is at the heart of our approach and is widely considered an effective and measured technique to mitigate non-systematic risk.
Whilst there is inherent risk in every investment, these risks are not always clear and obvious. The use of a well-diversified portfolio allows investors to spread risk across various asset classes, industries and geographic locations, and reduces the risk of concentrated losses.
Our various investment partners may have differing opinions, styles and approaches, but all remain consistent in their aim to achieve long-term growth through the use of well diversified portfolios.
Think long term and be patient
As is true in life, the same can be said for investments – there is often no quick and easy method to achieve success. Although there will always be exceptions to the rule, we believe that patience in investing is definitely a virtue.
Warren Buffett, one of the most successful investors of his generation, once said, “The stock market is a device for transferring money from the impatient to the patient.” If you want to be a good investor, patience is key.
Be disciplined
Being disciplined goes hand in hand with thinking long-term and being patient. Whilst we understand this can be easier said than done, we believe it is vitally important to remain disciplined and not succumb to impatience, emotional decision making or pay too much attention to often irrelevant and inflammatory market noise.
The most successful investors understand that to generate good long-term returns takes time, patience and confidence in the long-term growth potential of global markets.
Our investment partners share this sentiment and stick to making rational decisions when constructing investment solutions. Decisions are based on stringent research and logic by market-leading experts.
How the Key Principles benefit our clients
Our principles aim to provide a framework in which we can deliver consistent yet bespoke financial planning to meet our client’s objectives. These principles not only adopt widely accepted methods of assessing and mitigating risks, but also aim to educate our clients when planning their financial wellbeing and achieving their goals.
The value of investments can go down as well as up and you may get back less than the amount invested.