Our Investment Philosophy
In our considered opinion, it is not necessary to expose capital to excessive levels of investment risk in order to achieve consistently strong returns. Risk is always present as it is with any form of investment - even cash deposits at a bank – but it is the way in which our professionals mitigate that risk that determines whether returns will outperform or underwhelm.
Peerless Risk Management
Here, at Findlay Nicolson, we commit significant resources to our risk management operations because it is only by staying one step ahead of constantly changing markets that we can avoid large losses. Of course, some investing rules endure regardless of the prevailing economic climate but those who fail to bend with the winds of change must eventually break.
We remain convinced of the importance of equities in any investment portfolio and consider their innate ability to withstand the effects of inflation over the long term to remain intact. We aim to identify stocks that are underpriced but with strong fundamentals that have, somehow, fallen out of favor with the market at large.
Count on Intervention
The threat of inflation weighs heavily on any investor's mind and quite rightly so. We see no evidence of governments abandoning their penchant for short-term "quick fixes" whenever economic growth slows or when there is a crisis. Rather, we plan knowing that they can always be counted on to ignore the long term causes and focus on addressing the effects. This provides us and, of course, our clients, with a distinct advantage.
Our investment philosophy is based on two fundamentals:
- Diversification - Modern portfolio theory continues to prove the merit of investing in a wide array of assets to achieve strong risk-adjusted performance.
- Liquidity – Ensuring that assets are liquid – that is, easily bought and sold – is a key failsafe for all our investment portfolios. It allows us to respond and adapt to changing market conditions effectively and at minimal cost.