Why was Pragmatic Investing Created?
Pragmatic Investing was created to try and help guide people on how to view investing in stock markets. I plan to try and talk through some of the jargon used in the industry, as well as talk around the behavioural finance that occurs in markets.
I have worked in the industry over the last few decades and have spoken to many investment professionals, which combined with experience and industry qualifications have helped me gain a valuable understanding on investing money in a suitable risk adjusted manor.
I believe it is important to talk in terms that people understand and this then improves understanding by making it relative to what people can relate to. I intend to use my blog to help build a greater understanding which, will help some of the behavioural issues that are inherent within the markets.
I do not believe it is a sensible to create real losses for clients just because short term the fund or style maybe out of favour. Often it is more pragmatic to be patient and understand what is causing the underperformance and comparing against fundamentals and relative to the appropriate benchmark. It is important to also understand the business and the current economic environment.
For example when there is a panic in markets generally people will look to move there to more large companies that have larger balance sheets that will be able/to withstand better dips in the market. This of course doesn’t mean that the all smaller business have become bad business and often this provides good buying opportunities for longer term gains.
It is also important to remember what the fund style/approach is and what this sits within a blended portfolio to do.
Sensible Investment Time Frame
I think it is also important to understand that when investing in stock markets this should be viewed as a 5 to 10 year investment depending on the level of risk and return expectations. There may be times during these years, where fundamentals in markets may change and small changes may provide a greater risk/return opportunity.
What is my experience and qualifications?
I am a holder of the Investment Management Certificate from the Chartered Financial Analysts Society of the UK and hold the Diploma in Financial planning and other additional investment specific qualifications.