Fundamentals of Investing
How to Let Markets Work for You
The market is an efficient information processing machine. When you try to outwit the market, you’re effectively competing against the collective knowledge of all investors within it. By harnessing its’ power you can put this knowledge to work for you in your portfolio.
A sure fire way to blow up money is under-diversification. Ensure that your portfolio covers a range of different asset classes to reduce concentration risk and mitigate the impact of inevitable market volatility.
Investing, not speculating
Over time only a small percentage of money managers outperform the market after fees and it’s difficult to identify them once let alone consistently. Focus on what you know and can control rather than speculating with a hope of positive outcomes.
Taking a Long Term Approach
You never know which market segments will outperform from year to year. A diversified, long-term approach will give you more certainty about your investment outcomes. By long term investing we mean 5 – 7+ years.
Managing your emotions
Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to current market conditions may lead to making poor investment decisions at the worst time. Develop your strategy and stick to it – use your head, not your heart.
Looking beyond the headlines
Learn the difference between market chatter and what it really means. Don’t let the media be your adviser.
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Check out the short video introducing our unique investment philosophy - Investing with ‘CARE’
CARE investment philosophy