Our Investment Philosophy
As investors we are now lucky enough to have easy access to the entire world to help us grow our wealth and achieve the goals we set. Taking that a step further as a client of Phillips Wealth Partners you will have access to funds that are not available to the pubic directly but only through an advisory channel.
Our investment philosophy can be summarised in the 5 points below:
- Its extremely rare to pick markets and stocks consistently
- Keep costs and taxes to a minimum and focus on where the highest return is likley to be
- Diversification increases the reliability of outcomes
- Use robust academic research to guide you and Invest for the long term
- Educate you so begin to understand the expected future highs and lows of the portfolios and to stay invested
These are expanded a little more below.
Markets Work.
The philosophy we embrace it that markets throughout the world have a history of rewarding investors for the capital (money) they supply. Companies compete for investment capital, and millions of investors compete the find the most attractive returns. Markets quickly incorporate information from this competition into security prices.
Structure Determines Performance.
Decades of financial research have identified dimensions of higher expected returns in the global capital markets. Markets can be structured around these dimensions, which are sensible, backed by date, and cost effective to pursue in diversified portfolios.
Diversification is essential.
Diversification is an essential tool available to investors . It enables them to capture broad market forces while reducing the uncompensated risk associated with individual shares and increasing flexibility in trading.
Invest, do not speculate.
Traditional investment approaches strive to beat the market by taking advantage of perceived pricing "mistakes" and attempting to predict the future. Too often, these approaches prove costly and futile . Predictions go awry and managers may hold the wrong securities at the wrong time, missing the strong returns that markets can provide. Meanwhile, capital-based economies thrive- not because markets fail because they succeed.
Focus on your plan.
An investment plan based on the science of investing frees you to focus on what matters. Let markets work for you by taking advantage of sensible, well diversified, low cost portfolios, backed by decades of research and practical experience. As your financial adviser i can help create an investment plan for you.