February 21, 2013 at 5:01 pm #17638
The markets are behaving in strange ways, gold is losing value, it’s not clear what influences events, their is no yield to be found in the bond market. Where does one turn for direction? Outside of private investments, I manage my portfolio by spliting it 3 ways between one broker that is excedingly conservative who manages 25%, one broker whose plugged in the consensual view of money managers and who will act according to those views for 25% and I manage myself the other 50%.
For the money I manage myself, over the years, I have tried to keep myself informed by reading a lot. Regular and business newpapers, newsletters, (lots of “trading” newsletters at one point), conversations with “experts”, etc.
Over the years, I have realized that their is so much information available and so many points of view, that it makes it very difficult to stick to a particular path and a clear direction in your investing. It is very easy, if you read a lot, to be changing your strategy much too often according to the noises of the day.
When I became a partner of Bonner & Partner, I was looking for that clear voice. Ideas and strategies that would be clear and stable. I was looking for a team of collaborator who would have the courage to stick to their comments and recommendations and not shoot in all directions in orther to be able to always present some winner amongst the lot. I dont mean by that, a strategy that cannot change or be adapted but rather a strategy that is owned and that is so well established and presented that you cannot escape the consequences of it by talking about something else.
That’s what I found at Bonner & partner and that’s why I like it. The markets are not presently turning in favor of gold and emerging markets, lots of cash kept in reserve could have grown if it had been invested in the last few months. However, the strategy was not changed monthly to accomodate the news of the day. That way, I have not been crazily looking at my portfolio every five minutes trying to imagine what I should do next. I decided I was comfortable with the strategy and I am (probably much calmer about it than Rob and Bill and Chris and Will who have to think about the points of view of all the partners).
If the strategy is wrong it can be corrected, in time, after much thoughts. In the meantime, I think I’m saving a lot of money by not being constantly trading and trying to imagine what is the flavor of the day.
My message is essentialy to say to the team. Keep it up. Stay the course. At least from me (but I suspect from many others), you’re getting praise for your vision and your steady hands.
You must be logged in to reply to this topic.