With the humble cash deposit at a main street bank yielding next to nothing, today's investment environment demands that investors – sophisticated or otherwise – must expose their capital to greater risk than ever before.
From traditional asset classes to the blockchain – shrewd guidance is essential to ensure your money works both hard and smart.
When it comes to investing, Wainwright Marks Management maintains a strong focus on value. We are loath to pay a premium for a particular stock because it happens to be the broader market's darling of the moment and look to commit capital to stocks the market is paying little or no attention to. We believe that investing in equities still stands out as being among the best medium to long term investment choices, but we also recognize the key role that bonds and commodities can play in creating and maintaining a well-balanced investment portfolio.
We feel that while an equity portfolio can achieve reasonable diversification by holding between fifteen and twenty five securities if spread across industry sectors, some exposure to other classes introduces an additional element of protection against loss in the event of a market correction.
We eschew stocks that are excessively popular and steer clear of the herd mentality.
We gravitate towards those companies featuring solid underpinnings; things like a dynamic, experienced management team, tight operations, sustainable expansion, robust cash flows and, where applicable, generous dividends.
Sometimes called stocks and/or shares, these are the lifeblood of any growth-biased investment portfolio. They represent part-ownership of a corporation; some are traded in the pink sheets while others trade on the world's stock markets. Some pay dividends, some are "common", some are "preferred".
A staple of any portfolio geared towards the preservation of wealth and/or income generation. Fixed income refers to the coupon paid by debtors be they companies or sovereign countries. "Coupon" is analogous to "yield" or "interest", the amount payable is entirely dependent on the perceived risk of the debtor defaulting.
Sometimes called commodities, these are the raw materials we use for building, powering our homes, fueling our cars, eating, drinking and so much more. Many investors like the "honesty" of commodities arguing that their substance and tangibility make them more "real" than other assets.
Difficult as it may be for some to agree on what represents the best approach to investing, ultimately, the overarching aim is to emerge from a venture with more than that with which one enters having exposed one's capital to as little risk as possible.