Investment Environment and Mindset
A major aspect of creating a positive investment environment is a detailed understanding the following concepts. The broader environment includes gambling and speculative thoughts; therefore, an investor must attempt to filter out the noise.
- There is no guarantee on account performance.
- Investment managers have discretion on investment decisions, unless reasonable restrictions have been placed.
- We will not invest based on popularity but rather based on an analysis of the business and investment opportunity.
- We have no skill in predicting market moves, economic cycles, nor political events, etc. Thankfully, we do not find that necessary to achieve decent investment returns.
- We expect some investments will fail to achieve the desired result, thus the need for diversification and a broader view over multiple positions and time frames.
- Investment performance should be judged on a time frame equivalent to a full market cycle. That cycle is typically measured in years; five-year cycles are a general thought. A full market cycle would be boom-bust-boom or bust-boom-bust.
- We are not seeking outperformance of all investments at all times. If a popular momentum-driven pricing environment in any area of investments occurs, underperformance of that area is expected.
We are currently selectively open to new relationships. In order to build a positive environment for investing we are looking for investment minded individuals. The three most important characteristics to distinguish the investment-minded client would be:
- A willingness to turn investment decision making over to us.
- Patience required to be investors.
- Low and steady withdrawal needs.
If you know anyone who might be interested in investing, please contact Shane.