Our investment philosophy lies at the heart of all our advice; fundamentally, it is about steady growth over the long-term, not switching course in response to day-to-day events. We have researched our subject for many years and taken advice from the leading experts worldwide, and we can safely say that trying to second-guess the markets is not the way to go.
Trying to guess whether share prices will go up or down tomorrow, or next week, or next year, is an unreliable way of investing for your future. There is little evidence to show that this approach is ever successful in the long term. Investment markets are incredibly efficient processors of information, and prices reflect this information from moment to moment. So why try and beat the market when it can work for you?
We all know the phrase ‘don’t put all your eggs in one basket’, and when it comes to investments, it’s definitely worth keeping in mind. The greater the diversity in your portfolio, the less vulnerable you become to specific risks. Diversity increases flexibility and improves the reliability of your returns.
Dimensions of return
We have studied the sources of investment return for many years and have found that shares have a higher return than bonds or cash, and that the relative performance among shares can be explained by their size, their price (relative to certain accounting measures) and how profitable they are. To offer you a higher expected return, we emphasise these characteristics in our investment portfolios.
We understand that responding to the latest market gossip or media commentary is tempting, but achieving financial freedom means being disciplined in your approach. Ignore the people who say ‘buy this’ or ‘sell that’ on a whim, and rely only on what the markets and decades of evidence tell you.