A WAY OF INVESTING THAT WORKS
PortfolioScience™ is our way of investing that’s based on Nobel Prize winning research, academic evidence and most importantly, common sense. It’s about doing a few simple things exceptionally well. It’s built around our six principles of successful investing:
Accept the stock market is tough to beat
Don’t try to beat the markets. There’s a huge amount of evidence proving that the majority of fund managers don’t win over the long term.
Understand risk and return are related
Investors hoping for high returns with low risk can only be certain of one thing – disappointment. If you want higher returns you must take more risk. There are no magic tricks for getting around this one.
Don’t put all your eggs in one basket
Diversifying your investments, which means spreading them around as much as possible, is a simple and sensible way of reducing risk.
Focus on the investment mix
There are two things you can do with your money. You can lend it to someone, like a bank or a company. Or, you can own things, like property or shares. Finding the right mix between lending and ownership has been proven to be crucial to investment success.
Keep your costs low
A % point here or there may not sound very much. But it is. Small differences add up to large ones over time. Investing is the one area in life where you don’t get what you pay for, as typically the more it costs, the less you get back.
Control your emotions and think long-term
Buying high and selling low sounds mad. But surprisingly, it’s what lots of people do. They panic. You need to take emotion out of the process and invest for the long term.