Investment philosophy - common sense at the heart of our planning advice

Keep it simple

Rothmere Wilson,  Hitchin

Greater complexity tends to equal greater cost. You then need even bigger gains to cover the increased cost and produce the extra return to justify the original decision.

“Simplicity is the ultimate sophistication.” (Leonardo Da Vinci)

Make sure you have enough risk exposure to earn the returns you need. If a lower return will achieve your objectives, do not chase higher returns by adding more risk unnecessarily.

Know your limitations

Do not overextend yourself and therefore become vulnerable to downturns. If you do not understand something, or you are uncomfortable with it, then do not do it.

If it looks too good to be true, it probably is

When people talk about changes in fundamentals to justify stretched prices or returns (think dot com bubble, buy to let property, etc.), maybe it is time to take profits, or avoid altogether.

“The four most dangerous words in investing are ‘this time it’s different.” (Sir John Templeton)


Diversifying means you won’t suffer big losses when one investment falls in value. This can be much harder than you would think. Many fund managers hold the same shares and are compelled by their rules to be fully invested at all times. Cash is not just for everyday needs; it can and should be used in longer term investment portfolios, when other options are not compelling.

“Rule number one is never lose money. Rule number two is never forget rule number one.” (Warren Buffett)

Applying these straightforward ideas has given clients in our balanced portfolio a return of 42% in the last 5 years, compared to 6% in the stock market and 11% in cash*. For more explanation read our investment philosophy in detail.

*(Data from Financial Express on 09/10/2011. The stock market is FTSE 100 and cash is ING Direct Savings. Figures rounded to the nearest whole number)


Risk warning!

Rothmere Wilson,  Hitchin Rothmere Wilson,  Hitchin



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