Pensionfriend's Investment Advisory Philosophy
Learn about our fundamental investment advisory philosophy that forms the basis of our investment advice and recommendations.
Dr. Chris Mulder
Published on Nov 25, 2022 . Updated a month ago
Investing is a lot about trust in the expertise and also honesty of the specialist that advises you. In the following, we explain our fundamental investment advisory philosophy – in other words, the principles we follow and which form the basis of our advice and recommendations.
Not the standard warning
The standard warning for investors is: past returns are no guarantee for the future.
But a better warning should read: Biased presentations of returns are a guarantee that you won't see such returns in the future! That is why we seek to provide you with unbiased analysis and data on returns.* * Inspired by Stephen Nickell, Nobel Laureate and one of our teachers.Table of Contents
- Cost is a dominant factor
- Taxes are overrated and often incorrectly interpreted, especially in Germany
- Choosing your asset classes and their allocation is the most critical factor for long-term return
- The next most important decision is the choice of a specific benchmark for any stocks or bonds
- The third key choice is that of currency
- Rebalancing the portfolio is often tedious and neglected, while important
- Stock & Sector specific picking and active management is generally very risky
- Risk is confusing to many but it can be really understood well by considering a few factors
- Discipline is key
- Be very wary of products that force clients into an annuity
