“Investment is most intelligent when it is most businesslike.” - Benjamin Graham

Benjamin Graham is well known in the investment world as the father of value investing.

Investing is a multifaceted endeavour that requires a keen understanding of the interplay between process, people, performance, and fees.

Process: Building a personalised but disciplined approach

To be most business-like, you need a philosophy that combines discipline with flexibility, recognising that while the key investment principles remain constant, their application must be tailored to individual circumstances.

Any investment philosophy must be grounded in the belief that long-term returns are achieved through a balanced approach to risk and reward, with a diversified investment strategy that aligns with one's financial goals and risk tolerance.

This is where the significance of a process plays a part. This involves a systematic approach to making investment decisions, adhering to a well-defined investment plan, and remaining consistent regardless of market fluctuations.

People: Selecting a trusted adviser

The 'people' aspect of investing refers to the professionals who manage investments and the investors themselves.

In this aspect, it is key to stress the value of expertise and the importance of choosing advisers and fund managers with a transparent investment process and a track record of ethical behaviour and performance.

An investor's behaviour, self-awareness and the ability to stick to a long-term plan are critical components of investment success.

Performance: Prioritising consistency over high returns

Performance is another key part of successful investment planning; investors need to be cautious against chasing after high investment returns without considering the associated risks.

Instead, they need to focus on consistent performance that aligns with their investment objectives and risk profile.

This approach helps in avoiding the pitfalls of market timing and speculative investments that may lead to significant losses.

Fees: Understanding costs to maximise returns

Lastly, fees play a crucial role in the investment equation.

It's important to be cost-conscious when investing, where understanding and minimising investment costs and advice can significantly impact net returns over time.

You need to be mindful of the costs incurred but also don’t lose sight of the other factors above and how these fit into the mix with fees. There may be a lower fee but when you apply the other factors such as people, process and performance the fee may be less important.

At Collinson Wealth we adhere to these key principles when recommending the appropriate investments for our clients and as part of the planning process. We strive to distil complexity into simplicity so that our clients gain a deeper understanding of their own financial position.

The information contained in this publication is general in nature and is not intended to be personalised financial advice. Before making any financial decisions, you should consult a professional financial adviser.

Collinson Wealth Partners FSP 743091 believes the information in this publication is correct, and it has reasonable grounds for any opinion or recommendation contained in this publication on the date of this publication.