The reason many investors lose money in equities is because of their lack of knowledge about the businesses in which they invest, and their lack of experience in managing the inherent risk in equity markets.  
  • Minimising losses is central to the effectiveness of compounding returns and wealth creation
  • Outside of the funds management industry, risk is generally understood to be the chance of losing capital -we agree with this definition
  • Equity markets are risky, and a lot of investors lose money in equities.  Equity markets over time range between extremes of overvaluation and undervaluation
  • Most equity funds' returns are very similar to the market because they do not have the mandate nor the tools to protect their portfolios from ‘market risk’
  • The reason many investors lose money in equities is because of their lack of knowledge about the businesses in which they invest, and their lack of experience in managing the inherent risk in equity markets ( “Risk comes from not knowing what you’re doing”, Warren Buffet)
  • We do NOT believe that higher returns necessarily means higher risk
  • A good manager who is able to protect capital when markets fall, can deliver a higher return than the market, with less risk.  Manager returns can vary from year to year, so you should diversify your assets across a number of managers

Contact Us

Our Office Location

437 Lake Road
Takapuna
Auckland
New Zealand