Why an Investment Philosophy Improves Performance and Protects Investment

By Stephen Sutherland, author of Liquid Millionaire.
Posted in the Category of ISAS, SIPPS, Investing, Stock Market on 30th October, 2011.
Tags: bull market, institutional investors, isaco, liquid millionaire, market health, market indexes, nasdaq composite, russell indexes, s & p 600, stock market, stock market summary.

Why an Investment Philosophy Improves Performance and Protects Investment

Last week I discussed how you can use tools such as HIRE CAR™ to achieve better performance than our benchmark, the Nasdaq Composite indexes. This week I want to talk to you about my investment philosophy and why one helps my performance and helps to protect my investment.

If you do not have a philosophy, or strategy, you will struggle to achieve a positive performance with your investments. In my book, Liquid Millionaire, I discuss why Alex Ferguson and Manchester United are always likely to be winning competitions. It isn’t down to luck, it is because he has a philosophy about his teams which is proven to be successful. Investing is the same and your performance is always improved by having a successful philosophy and applying it.

Reading and analysing the market is never about guess work. Instead it’s about looking at what the market has done and what the market is telling you.

We know from history that bull markets last for multiple years. History tells us that we could have between one and three years left to run on this one – or possibly even more.

We know that the market over the long-term is in a confirmed uptrend and we know after resting periods markets always eventually go higher. You could say that right now this is providing ISA and pension investors with an extremely rare investment opportunity

My philosophy therefore is never to exit a bull market before it has fully run its course and over the last 3 years my performance has proved this to be correct by averaging 22.1% per year versus the Nasdaq’s 16.8% and the FTSE 100’s 9.3%.

Until the next time my friend.

To find out more about Shadow Investing click here.

Would being able to have a conversation each and every day with me to ask what I’m invested in so that you could copy me? Imagine, when I quickly swoop in on opportunities to profit, you could too!

Today you can take a sample of my take on the market for free, without obligation and make up your own mind.

You can take a look at The Big Picture, October Edition or if you prefer you could look at ISACO’s 2011 ISA Guide.

If you like how I think you might like the idea of shadow investing me. Shadow Investing is new concept that allows you to get almost identical returns to the ones I get.

That means if I get a 12% annual return, so do you.

You can email us or call 0870 757 8554 if you prefer.

If you do contact us you are under no obligation to do anything, buy anything or sign up for anything.