Tips for Successful Investing Strategies
March 04, 2021

Show Notes:
It can be difficult to choose a framework or form a philosophy for investing your clients' hard-earned money.

However, there are a few principles to keep in mind.

In developing my "true north" for investing, it started with something Sir John Templeton said...
time in the markets is more important than market timing.
To catch that key piece of wisdom and more...check out today's episode.

What is your investment philosophy?

1. Start with strategy design based off your philosophy. For example, I believe markets are efficient and therefore choose to create portfolios that expose my clients to the factors I feel determine portfolio returns. Like relative price, size, and profitability.

2. Develop a method to evaluate assets and/or portfolio managers. Which types of assets will you use? This involves looking at what the client needs in relation to your overall philosophy and strategy. For example, if I see the client requires 6% returns, I find assets that have delivered at least that historically. Next move to portfolio manager evaluation. This holds true if you select mutual funds or separately managed accounts (SMAs). This should be based on the client's investment policy statement which starts with a discussion around risk and return preferences.

3. Develop a disciplined framework to monitor your strategy.  Finally, have the discipline to follow the strategy. Largely the goal of a financial professional is to manage the behavior of the client through good times and bad...especially the bad. What benchmarks or goals will tell you if this is working? Client performance? Broad market indices?


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