Selecting the Best Ingredients for Your Portfolio
In this third piece of our series on building a better portfolio by thinking of it in terms of tastes, recipes, and ingredients, we’ll focus on the benefits of selecting better ingredients.
Is Your Portfolio Tailored to Fit Your Needs, or Just ‘Off-The-Rack’?
While the alterations may be small and subtle, they make a big difference when it comes to comfort and fit. Our experience is better. For an investment thought experiment, think of the “off the rack suit” as the broad market; we simply take what we get off the shelf with no alteration. Now think of Foster Group as the tailor and the alterations as portfolio personalizations called factor allocations.
Satisfying Your Tastes and Preferences for Investing and Dining
If you were asked to describe what you liked about your favorite food, where would you start? If you were asked to describe what you would like in your investment portfolio, what would you emphasize?
Timing Isn’t Everything
Attempting to buy individual stocks or make tactical asset allocation changes at exactly the “right” time presents investors with substantial challenges.
High Profit vs Low Profit: The Returns Are In!
If higher returns are offered to riskier investments, why is it that companies with higher profits generate better returns? Aren�t these companies less risky?
Timing Isn’t Everything
Attempting to buy individual stocks or make tactical asset allocation changes at exactly the “right” time presents investors with substantial challenges.
High Profit vs Low Profit: The Returns Are In!
If higher returns are offered to riskier investments, why is it that companies with higher profits generate better returns? Aren�t these companies less risky?