If we could only use a single word to describe our investment philosophy, it would be patience. In the past, it has occasionally been possible to make money over the short term. However, we have always believed that long term investing and patience are paramount to minimise investment risk.
When we create a financial plan for our clients, we always implement a structure and process that ensures our client’s investments carry an appropriate level of risk and satisfy each client’s personal objectives. Whilst capital growth is the main objective for our investors, we believe that capital preservation is equally important – especially for those investors who rely on regular income from their investments and pensions.
History has taught us many lessons about investing, and perhaps most importantly, that there will always be a degree of uncertainty in the future returns of an investment. With this in mind, we believe that investors should always remain realistic with their expectations, and not rely too heavily on the past performance of particular investments since past performance has often been proved to be very misleading. As Albert Einstein stated “compound interest is the eighth wonder of the world”. Fortunately, none of us need to be as clever as Einstein to make money – we just need to be patient.