Slow and Steady Wins the Race
- We will be honest with you – at Longhurst we are tortoises.
- We will never own enough of any one company/sector/idea to make a killing it in, or indeed to ever be killed by it.
- We invest our clients’ hard-earned capital into well diversified portfolios consisting of mainstream equities and bonds.
- Large, well-financed and highly innovative companies, with recorded and credible histories, evidenced across significant economic cycles.
- As a number of new companies go public, with mind-boggling and speculative valuations relative to their negligible earnings, as an investor it would be quite normal for you to think – ‘Why don’t I just own these 5-6 big tech company stocks and forget about owning anything else?‘
- That is, you’ve identified the best-performing stocks of the year and want to put all of your eggs into their basket.
- Best-performing, meaning, the half a dozen stocks that went up the most before you decided to buy them.
- At Longhurst we believe that the narrower you construct your portfolio, the greater your opportunity to both outperform and underperform an index.
- This is especially true if you have just selected the most recent hot picks.
- You have entered a place where you’re no longer investing – you’re speculating.
- Hares speculate.
- Tortoises invest.
- And if you want to go on a Unicorn hunt, you only do this with a small % of play money.
THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.