Ten Tenets of Investing
1. NO CRYSTALL BALL. The future stock index prices, interest rates and currency levels are unpredictable. Therefore our investment strategy will not rely on guesswork.
2. KEEP IT SIMPLE. Every aspect of managing your investments will be clear and open to your common sense. Some option strategies could be puzzling at first, but given little time, you would get comfortable with them too.
3. INVEST DIRECTLY. Wealth results from direct ownership of stocks and bonds of great companies. Most of the time we'll stay away from funds and other pre-packaged products and invest directly.
4. ASSET ALLOCATION IS THE KEY. The ratio of bonds, stocks and cash in your portfolio is of primary importance. It depends less on your stage in life, and more on the current relative value of these assets and your risk tolerance.
5. GENERATE INCOME. We'll constantly strive to get your portfolio to generate income. Incoming cash flow from interest, dividends and option premiums is a great contributor to your emotional and financial well-being (yes, emotional comes first).
6. BE SELECTIVE. There are thousands of publicly traded companies in North America. The ones in your portfolio will not be picked randomly. They will be carefully selected based on fundamental and technical parameters.
7. TAKE YOUR TIME. Impulse buying does not belong in investment management. Before investing we'll investigate and have clear answers to why this investment? Why now? What are the risk, the expected return and the exit strategy?
8. LET IT BE. A properly designed portfolio of quality investments does not require constant watching and frequent adjustment. Wealth is mainly accumulated not by buying and selling, but by holding.
9. TALK TO ME. As your investment advisor, I can not predict the future any more than you can. Your benefit of working with me is having someone with experience and the vested interest in you, who you can always call. I am easy to reach, so with any questions or concerns call right away, or better still come to see me. You'll feel better.
10. HAVE FAITH. Watching your hard-earned assets going up and down during volatile markets can be outright scary and the past is our only guide. The financial markets have successfully recovered after all major wars, terrorist acts and recessions. It is the optimist who is right in the long run. Have faith in yourself, the free economy and your investment advisor.
