How can I be a champion investor?

October 12, 2023

What an exciting time for racing fans! Breeders’ Cup is back at Keeneland and I am ready to join the world’s best. Do you have any financial strategies on how to be a champion investor at the track? It’s definitely more fun than traditional investing in my book!

You are right! It really is an exciting time, here in Kentucky. Over the years when betting or picking a horse, I’ve often looked for trifectas, past races, environment, jockey, etc. The list could go on and on. A similar can be said for things to look for when constructing a portfolio: prudent asset allocation, capital market forecasts, manager tenure, low costs, best-in-class performer over long time periods. The randomness of horse racing outcomes differs from investing which produces long-term positive results with proper portfolio construction and monitoring.

The only successful strategy to winning at the track is understanding the risks and planning on having a good time no matter the outcome! The same can be said for investing during this difficult environment. While the opportunity to turn risk into financial reward can be appealing for some, a wise mentor once told me that investing should never be exciting, in fact, it should be quite boring.

Now I would never consider my career to be boring because I have the amazing opportunity to help people accomplish their financial goals. However, seeing clients achieve their goals is the exciting part; the process of getting them there should be what’s boring. Longshot investments lose more often than they win and when you are coming down the final stretch, you may come up short in achieving your financial goals. We’re not pursuing longshot investments that often are boom or bust – look for a consistent and balanced approach.

That’s why we take a goals-based approach to investing, focusing on providing our clients with the smoothest ride to the finish line. We believe in the importance of asset quality, a balanced diversified portfolio, and managing downside risks to help you achieve your goals. Slow and steady may be boring but you know what they say….it wins the race!

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