Philosophy can be relatively simple, despite the intimidating and complicated seeming name. In fact, it may be so straightforward that it may be encapsulated in a single word. The sum of years of experience and knowledge in comprehending the nuances of markets and human behaviour is our investment philosophy.

For instance, it’s important to balance risk and reward while investing, but many people aren’t sure how much risk they can realistically tolerate. For this reason, when establishing your “Life Strategy,” we take the time to fully comprehend you and your destiny.

Even if we’re not conscious of them, we all have biases. Our human nature has developed peculiarities that may aid us in navigating daily life but may be detrimental to our ability to make sound financial decisions.  The most commonwealth destruction mistake we find is failing to stick with a plan through all the ups, downs, and sideways moves.

The topic of investment philosophy is very broad; a fast search on Amazon yields more than 4,000 results. Therefore, the main tenets of our own investment philosophy are listed below. 

1. Market predictions are impossible

Neither can. We’d like to invest both of our time and yours on creating a clever, adaptable strategy that will keep you on course no matter what the future holds.

2. The markets are reliable

Even while we are unable to forecast the future, one thing is certain: the global stock market is dependable and resilient over the long run.  You’ll always come out on top if you can maintain your composure when others can’t.

3. Take inflation as a real risk

Market collapses are well known, but what about inflation? The actual risk is not increasing your wealth enough to accomplish your objectives.

4. Have faith in research-based investment

The evidence suggests that patience is rewarded mathematically. Keep your focus on your plan and ignore the distractions. 

5. Plan far in advance

When we make plans, we consider all aspects of your life, including the future and your legacy. Your current actions will cause waves in the future. Focus on the long term and disregard the short term.

6. Diversification should be thought out

Your eggs will be widely dispersed among a variety of international baskets, as will be ensured by us.

7. Recognise setbacks

There will still be ups and downs with your assets. The most crucial thing is to control your emotions and never respond hastily.  

8. Don’t just read the headlines

Market declines and gloom make for interesting headlines, but they’re more concerned with making money off of the stories than giving real market updates. Get used to ignoring them.

9. Take charge of what you can

Although you have no influence over the markets, you do have control over how you react to them and can decide whether to keep to your plan. 

10. Your life strategy serves as your yardstick

How well someone else’s investments do is irrelevant. Your progress towards living the life you want is everything.

Stick with your plan is how we would summarise our philosophy. Despite what most people think, doing this is actually far more difficult because people by nature are always unsuccessful investors. 

The unaided human intellect is often not capable of developing a strong lifetime investment strategy or the faith, patience, and discipline to avoid destroying that identical plan during a brief period of market or emotional stress when fear or greed drown-out sense and reason.

We’re here to enjoy everything ‘good stuff’ that comes your way.

Stay on course and maintain focus when you feel tempted to veer off course to help you achieve your goals.

Contact us if you’d like to learn more about why Expat Wealth At Work is the best option for professional financial life management and why you’ll appreciate working with us.