Hollywood loves to glorify the flashy, speculative ‘boom or bust’ world of day trading stocks. Most of us have seen the hectic, risk-saturated life of The Wolf of Wall Street (and others) on the big screen and thought, “not for me!”
Fortunately, there is a whole other, far less dramatic side to share markets. One that offers everyday investors an opportunity to build their wealth and secure their financial futures through a measured, considered, and evidence-based approach.
This is the approach that Cambridge Partners take to investing. You can read about our investment principles here.
Some of the keys to our approach are:
Speculators will often try to ‘time the market’ in an effort to buy shares at what they consider to be a low point, and (hopefully) sell them quickly at a higher price. This is a high-risk, guess-based strategy that can lead to big wins, and big losses.
Conversely, we take the evidence-based approach that the market has generally trended upwards over the last 100 years, and (over significant periods of time) has delivered solid returns for investors. While there are fluctuations in share prices between days, weeks, and even years – we can reasonably expect the value of quality shares to increase over time. i.e, if you spend enough time in the market, you’ll see positive returns. And we have.
Below is a chart of the value of the S&P 500 Index (made up of the top 500 companies listed on US Stock Exchanges) from 1927 to 2020.
If you invest in one company, you are putting all your investment eggs in one basket. Your fortunes are inextricably linked to that one company’s performance. Even if you invest in ten great New Zealand companies, you can still be exposed to the ups and downs of the New Zealand economy. The same applies when you invest in just a handful of industries.
We have highly diversified portfolios that include quality shares across many countries, industries, and companies. This means that you are well placed to weather any localised ‘storms’.
Overcoming emotions is a fundamental part of success in investing. It is very easy to get nervous when our share performance dips, or get overly excited when things are going well. However, reacting emotionally to short-term fluctuations in prices – rather than sticking to a considered, long-term strategy – can be very costly.
If we make emotion-driven decisions, we risk selling low and buying high. A very undesirable outcome!
At Cambridge Partners, our highly experienced advisers work with clients to ensure they understand that riding the wave of emotions is not a recipe for financial success or happiness. We build solid, best-practice investment strategies, and rely on them to deliver the desired outcomes.
Cambridge Partners offers a highly personalised and holistic approach to financial planning, investing, and wealth management. We work to understand your values and goals – as well as the level of risk you are comfortable with.
Everyone’s situation is unique, and your investment strategy will always reflect your objectives and timelines.
Your investment adviser works with you to develop a portfolio that best fits your circumstances. This might be a ‘growth’ focused portfolio that aims for higher returns over a longer time period. Alternatively, it might be a ‘defensive’ focused portfolio for those looking for more reliable, low risk income in the short term.
Generally, you’ll have a strategic ratio of both growth and defensive assets, as the examples below represent:
Your adviser will help you make the best decision on what asset mix your portfolio should contain, and then set up the relevant purchases on your behalf. You have full visibility of your portfolio via an online portal and regular adviser updates.
The assets in your portfolio are in your name – and you are always able to invest more money, or make the decision to sell at any point.
You can view our portfolios below:
If you’d like to discover more about investing with Cambridge Partners, please Schedule A Call or get in touch via email. One of our investment advisers will answer any questions you have, and (if you’re happy to proceed) look to set up an initial no-obligation meeting to discuss your options.
We look forward to hearing from you.
We offer a no obligation review of your situation.
We will call you on the number you provide.
Want to know if we’re a good fit for you?
Or just want to know more about your options?
Book a free 15 minute call with one of our Associate Advisers.
Let them know a little about your situation, and they’ll be able to answer your questions and help guide you in the right direction.
We’re here to help.