Investment Beliefs Bennuam
B eing curious is a condition for growth and innovation
E motion is the biggest pitfall
N aked returns matter
N o long term without staying power
U ncertainty or volatility is not a risk
A daptability is the basis for continuity
M ix of investments is key
Being curious is a condition for growth and innovation: a better sustainable world arises by exploring possibilities
Curiosity is required for thorough analyses and to generate new ideas for change and improvement. This makes curiosity the booster to stay ahead of developments in the economy and financial markets.
Emotion is the biggest pitfall: avoid emotions by structuring the investment process
The power of investing is in the discipline to avoid fear and greed. A structured investment approach with thorough analyses is the basis for trust in your investment portfolio and not lay awake at night.
Naked returns matter: pure returns without leverage and costs are leading
The return of an investment can be enhanced by financing, structuring, in-transparency and cost structures. Most of the time good alternatives are available for these enhanced investments with less risk, better terms and lower costs.
No long term without staying power: structure staying power with liquidity
The long term is crucial for asset management. But the long term can only be achieved by staying solvent with adequate liquidity management. Times of stress should provide investment opportunities and not the risk of being derailed or stopped out. Staying in control and avoid the temptations of short term (over-)reactions is key to long term wealth accumulation.
Uncertainty or volatility is not a risk: risk management by deep knowledge of investing, structure and scenario analysis
Risk is the loss of capital, not the volatility of the returns on capital. Volatility is a measure of uncertainty. The bigger the uncertainty, the bigger the required return should be to compensate for the uncertainty. Risk should be managed by knowing what you invest in and how, in order to be in full control of your investments under all circumstances.
Adaptability is the basis for continuity: to reach your objectives you need to monitor, evaluate and adapt periodically
The world changes continuously. The economy moves in short and long cycles. The economic growth from the industrial revolution and the invention of the steam engine has been taken over by the age of oil, electricity, automation and digitalization. Lately sustainability technology is increasingly becoming a driver of growth. The market capitalization of the technology sector is currently bigger than the market capitalization of the energy and financial sector combined. Time to adapt again?
Mix of investments is key: asset allocation is the key driver of returns, diversification is not an adequate condition for good returns
The selection and allocation of asset classes primarily determine the risk-return profile of an investment portfolio. This strategic asset allocation is the basis for long term investment objectives. The selection of investments within an asset class are less important for the end result than the way the asset mix is managed.
