A great deal of time and ink has been taken up in the financial media these days with suggestions about the “right” kinds of investments to hold at this time. We here at PartnersInWealth recognize the appeal of well-promoted investment tools and are always asking ourselves if these have merit for your circumstances.
Are TIPS (Treasury inflation protected securities) a good investment idea at this time?
Should we invest in hedge or private equity funds?
Do investments in gold or other commodities add value or protect an investment portfolio?
These are just a few examples of questions that we constantly ask ourselves as we look for ideas that will provide you with the best results. Our goal is to create for you the absolute best investment portfolio possible and to constantly be on the lookout for ideas that will help the portfolio perform even better.
The Best Investor Experience
In deliberating over potential investments we are careful to keep an open mind and evaluate each idea on its own merit. For example, we recently spent about 5 hours reviewing and debating if TIPS should be added to some client portfolios.
We are equally careful, however, to not jump on the latest bandwagon or to change your portfolio for change sake alone. It is human nature when things are not going well (like the current stock market) to take action. Yet action is often the enemy of successful investing.
Our experience has taught us that the fancier or “hotter” an investment idea is the less likely it is to produce favorable results. For example, we did not jump on the technology stock bandwagon in the late 1990’s. (You may recall technology stocks came crashing down in the early 2000.)
A quote from Warren Buffet seems appropriate: “The Stock Market is designed to transfer money from the Active to the Patient.”