The world of investments is changing constantly. However, we feel there are underlying investment axioms that will remain constant and we have listed some below.
An investment portfolio should be appropriately structured for the purposes it is to accomplish. The investor needs to be clear about these purposes.
Setting an appropriate Investment Policy, including your asset allocation decisions is the first order of business.
Asset allocation is the most important driver of investment returns.
Keep your investments diversified. For example, most investors should have some cash, fixed income (bonds) and equities (stock). No single stock position should be more than 5% of your portfolio.
Know the potential risks and rewards of your investments.
Know the limitations of your investments.
Time is an important factor in investing; now is always the right time to improve and implement your investment plan.
Don't let the media investment noise sway your decisions.
Stick with your investment plan and your Investment Policy through the inevitable ups and downs so you will participate in your fair share of the up moves.
Investment Axioms
alpha analytics
"Alpha" (α) is a financial term describing that part of an investor's return that is due to the skills of the investment manager, as distinct from the return of the market as a whole. "Analytics" is the process of systematically collecting and analyzing data in the service of effective decision making. At Alpha Analytics, we strive to add Alpha value through skilled fundamental analysis and a scientific, disciplined approach to investing.