Our Investment Approach
Above all we adopt a prudent and thoughtful approach when investing on behalf of our clients. In doing so, we adhere to the following philosophies:
1) Asset allocation determines performance.
We determine your risk profile and your ideal asset allocation and build a portfolio in line with this. Over time, it is asset allocation, and not market timing or stock selection, that most significantly determines the performance of your investment.
2) Where possible, invest for the long term.
The longer you remain invested, the lower your risk of loss. In addition to this, the powers of compounding result in exceptional wealth creation and are only realised with time.
3) Equities provide the best after tax returns over time.
Do not confuse volatility with risk. Equities are volatile but are not necessarily risky. Importantly, risk is both the danger of losing capital AND the danger of not reaching your targets.
4) Be prepared to invest when sentiment is at its most gloomy.
Be prepared to take profits when sentiment is overly optimistic.
5) Reinvest regularly.
This serves to reduce risk and to increase the positive effects of compound interest.
6) Rebalance your portfolio.
Rebalancing forces you to buy low and sell high – two of the most basic yet difficult aspects of investing.