Investing Principles
PAY ATTENTION TO POLICY, NOT POLITICS
PAY ATTENTION TO POLICY, NOT POLITICS
Political drama doesn’t determine:
-
- financial plan
- portfolio direction
- business climate
Policy can determine:
- Interest rates
- Taxes
- Rules and regulations
PAY ATTENTION TO A MUTUAL FUND’S CULTURE AND INVESTMENT TEAM
PAY ATTENTION TO A MUTUAL FUND’S CULTURE AND INVESTMENT TEAM
- Continuity is important in a firm’s:
- Leadership
- Investment philosophy
- Goals
- Discipline
PUT A PORTION OF YOUR PORTFOLIO WITH INDEPENDENT THINKERS WHO CAN ACT ON THEIR ANALYSIS
PUT A PORTION OF YOUR PORTFOLIO WITH INDEPENDENT THINKERS WHO CAN ACT ON THEIR ANALYSIS
LOOK FOR FIRMS WHERE MANAGERS INVEST CONSIDERABLE SUMS ALONGSIDE SHAREHOLDERS
LOOK FOR FIRMS WHERE MANAGERS INVEST CONSIDERABLE SUMS ALONGSIDE SHAREHOLDERS
- How much money portfolio managers have invested in their own funds is a key criteria used to judge funds
- Significant “skin in the game” is seen as important indicator of management commitment & responsibility
- SEC requires disclosure of managers’ investments in funds they manage
Information available:
- – Mutual fund’s Statement of Additional Information in prospectus
- – SEC’s electronic data gathering, analysis, and retrieval database (EDGAR)
PAY ATTENTION TO THE CULTURE OF THE PEOPLE AND FIRMS YOU INVEST WITH
PAY ATTENTION TO THE CULTURE OF THE PEOPLE AND
FIRMS YOU INVEST WITH
- Certified Financial Planner (CFP)
- Chartered Financial Analyst (CFA)
- Certified Investment Management Associate (CIMA)
Does the advisor:
- Understand & agree with your objectives?
- Pay attention to your comfort levels?
- Have a realistic & workable plan to achieve your goals?
- Have the same values & priorities?
- Emphasize long-term outcomes & investments?
Connect
Connect with us on the following social media platforms.