We act as
your Financial Coach to maintain discipline
Capital Market Rate of Return
We know that every investor has the capital market rate of return there
waiting for them, and if only they are patient enough they will enjoy
a successful investment experience. Imagine a bucket which is filled to
the brim with water, sitting on a firm foundation. It's not until the
investor comes along and picks up the bucket that the water starts sloshing
around and water spills over the top and is lost. I would prefer it if
an investor would simply invest then go to the beach and forget about
their portfolio, instead of diminishing the capital market rate of return
by interfering with what is already there for the taking.
For example, if an investor were to invest £1 million and receive
a 10% annual return for 25 years, the final value of the portfolio would
be £10,800,000. However, if that investor were only to receive an
8% annual return, the final value of the portfolio will be £6,800,000,
a difference of £4 million.
The economist and Nobel laureate Paul Samuelson
said 'there is something in people; you might even call it a little bit
of a gambling instinct. I tell people investing should be dull. Investing
should be more like watching paint dry or grass grow. If you want excitement
take your money and go to Las Vegas.'
It is true that we do not have people with investment problems. We just
have investments with people problems. Our key objective is to prevent
customers from making stupid mistakes and losing what is already theirs
for the taking.
