Our objective is to generate long term returns, by investing in equities, with a value investing philosophy and a long-term investment horizon shared by both investors and fund managers.
The
three pillars of SMARTBROKER's investment philosophy are:
- Fundamental analysis
- Appropriate risk management
- Long-term vision shared by both investors and fund managers
Our investors come
first.
At SMARTBROKER we have a commitment with our investors: to
fulfil our fiduciary responsibility. We must pursue the
very best for them at all times.
Our mission is to obtain long-term returns. For that, we
invest in equities with a value investing
philosophy and a long-term horizon.
Historical performance of different assets (equities, fixed income, deposits, property market) over the long term confirms as much: the return of equities exceeds all others.
Investors like Benjamin Graham,
Warren
Buffett and Seth Klarman are celebrities for consistently
outperforming market returns. All of them share a similar
investment philosophy: value is different from
price.
At SMARTBROKER we share this philosophy. We
dedicate all our efforts to analysing the market seeking
opportunities, identifying and investing in those companies
where the real value is far in excess of the market price.
The share price, over the long term, will have to factor in the real value
of the company. This convergence of price and value is what
generates the returns we look for.
Value investing
cannot be a
tactical or short-term investment. Value investing must have a
long-term horizon. The convergence of value and price is rarely
instantaneous; it occurs over the long term.
We must be patient and wait for this process to culminate, keeping companies
in our portfolios despite possible price fluctuations over time.
We recommend an investment horizon of at least 5 years for equity
investment.
The intelligent investor can
distinguish
between changes in the real value of a company and what are
simply fluctuations in its price.
An investor with a long-term horizon can benefit from value investing,
selecting good companies, acquiring them at a good price and waiting
patiently for the price and the intrinsic value of the company to converge.
History shows us that this is an effective method of generating returns in
excess of the market.
It is necessary to start saving
as
soon as possible and to the highest extent. Every year of
additional savings can make an enormous difference in the future.
However, saving does not guarantee maintaining the same purchase power in
the future. Inflation diminishes purchasing power from year to year and the
only way to prevent this is to protect oneself with the appropriate
investment.
Investing long-term to achieve returns makes the effort of saving
worthwhile. Saving is necessary, but it's not enough. Investing
properly over the long term is the most effective way of
saving.
