Talking about an ‘investment philosophy’ can sound a bit lofty, but it’s really just a set of guiding principles that govern the way we manage your money for you.
Different types of wealth managers will take different routes, but we believe in an ‘evidence-based’ approach. It means the decisions we take with your money are based on the results of long-term market observations and empirical research.
We’ll never act on a hunch, use guesswork, or try to ‘beat the market’ – because the evidence shows you can’t. Some managers may get ahead for a little while, but doing it consistently is extremely difficult and it racks up unnecessary costs.
Our five key principles
1. Think long-term
Investing really is a long-term pursuit. We can’t predict the future – nobody can – but we can say with confidence that creating a tailored plan, sticking to it and settling in for the long term is the best way to grow your wealth.
2. Understand that risk and return go hand in hand
All investing comes with risk – the key is to find a level that suits your risk profile and that you’re financially equipped for. You shouldn’t take more risk than you’re comfortable with, but equally you need to give your money the best possible chance to grow.
3. Have confidence in the markets
Even if you’re not an experienced investor, know that capitalism is a robust and resilient economic system and that the markets are an efficient mechanism for rewarding patient investors.
4. Try to ignore the noise
It’s not easy, negative stories about the markets make great copy. As humans we’re hardwired for knee-jerk reactions and emotional decisions, which more often than not are unhelpful. It can be hard to hold your nerve, but we’ll be here to help.
5. Don’t compare
It’s hard to resist, but comparing your progress to other investors is a sure-fire way to annoy yourself. Investing isn’t a race and nobody else’s outcomes are relevant to your life or your goals. The only thing that matters is that you’re on course to achieve what you want.