The ‘next’ big thing …

At Longhurst we believe that letting short-term trends influence your investment approach is counterproductive to pursuing your long-term financial goals.

When confronted with the choice of whether to include the ‘next’ big thing in your investment strategy or portfolio, it may be helpful to ask yourself the following 4 questions:

  1. What is this strategy claiming to provide that is not already in my portfolio?
  2. If it is not in my portfolio, can I reasonably expect that including it or focusing on it will increase expected returns, reduce expected volatility, or help me achieve my investment goal?
  3. Am I comfortable with the range of potential outcomes?
  4. Is greed influencing my thinking?

If you are left with any doubts after asking yourself these questions, it may be wise to take a step-back, defuse the emotion of wanting to ‘buy’ into this new investment, and instead take some more time to think it over.

Within equities (or the Great Companies of the World), for example, a market portfolio offers the benefit of exposure to thousands of companies doing business around the world with broad diversification across industries, sectors, and countries.

If this portfolio has been designed and recommended by a competent and caring Financial Planner, where the portfolio’s primary focus is on ensuring you achieve and maintain your version of Financial Independence, why would you then choose to get caught up in the noise that is the ‘next’ big thing and buy something that takes unnecessary risk with your money …. ?

The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Longhurst Limited is an appointed representative of TenetConnect Limited, which is authorised and regulated by the Financial Conduct Authority. TenetConnect Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 149816 Registered in England and Wales under reference 11193790 Registered office address: Second Floor Challoner House, 19 Clerkenwell Close, London, United Kingdom, EC1R 0RR. 01604 201636.