We’re not interested in “noise” from the media or speculators. Instead, our investment philosophy is based on rigorous academic research and evidence built up over long periods – all grounded in a worldview of continuous questioning, and pursuit of a wider investment horizon rather than looking for shortcuts.
Long-term investing means weathering storms in markets, and a clear investment philosophy gives strong foundations and a focused vision for doing so.
The core principles of the Hoe Bridge Wealth investment philosophy follow a “smart beta” or factor-based approach, built on a few key ideas outlined below:
Free markets allocate capital and investors seek returns for taking risk with their capital. The process of investment has been codified by formal capital markets and most investors participate in tightly regulated public exchanges of shares and bonds.
Diversification is the principle of spreading your investment around to reduce the risk that any individual manager, country, sector or asset class can overly affect your portfolio.
Decades of academic research into the performance of certain asset classes have pinpointed information that can generate higher expected returns over time.
All investment activity incurs costs; the key is to identify reasonable costs that are indicative of value added by those making decisions and doing the work. Financial planning seeks to boost your overall investment outcomes and avoid investment and tax “errors”.
Our portfolios aim to beat the market average (against our portfolio benchmarks) by seeking the best compromise between the rigidity of purely passive investment and the excessive costs of active management.
We know the world is changing, but clear long-term data on investment performance under contemporary sustainability criteria is lacking. Our portfolios have nevertheless been constructed to align investment decisions with sustainability factors, knowing that investments are intended to build a better future.
Markets move in random directions, so predicting outcomes is typically down to luck or timing, and the chances of successfully and repeatedly out-predicting and out-performing the overall market diminish over longer time horizons.
We always encourage anyone seeking a financial plan to ask their planner what their overall strategy is and for everyone involved to be ready to discuss this robustly. At Hoe Bridge Wealth, the door is open for conversations about all the parts of our investment philosophy, because it’s a cornerstone of how we work with anyone.
If you’re curious about any of this, let’s get talking!
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