The investment philosophy includes a comprehensive understanding of market functionality and the principles that influence investor behaviour.
Lack of a personal investment philosophy can make you vulnerable to investment managers, forcing you to change strategies frequently in search of the right one, which can lead to significant losses when you change portfolios.
Developing an investment philosophy allows you to choose one that suits your needs, market perceptions and individual preferences, including your risk tolerance.
✔️ Reject strategies that do not fit your market vision.
✔️ Select investment methods according to your requirements.
✔️ Effectively combine financial assets with your unique characteristics.
Our beliefs about the necessary information (historical, publicly available or insider) to achieve above-average market returns when investing reflect our views on market performance.
Almost every investment philosophy is based on the assumption of a market inefficiency, but these philosophies differ in their views on the most likely areas of inefficiency and the duration of that inefficiency.
Experience shows that no amount of information gives experienced investors an advantage over newcomers because the price of an asset already reflects this information.
All financial market participants have equal rights and opportunities.
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