Together, we bear the responsibility for increasing the wealth of our clients. We strongly believe that investing is a type endurance sport – a Marathon run, not a 100m sprint. Therefore, we are not looking for quick returns, but want to grow our clients’ wealth steadily over the longer term. In order to achieve one’s investment objectives it’s elemental to actively seek sufficient return on assets and ensure long enough investment period to reap the benefits resulting from the effect of compound interest.
When looking for a suitable investment solution, it is worth bearing in mind that investing is always associated with risk. But on the other hand, without risk, there is no return either. The higher the return target, the higher risks need to be taken. However, investing is not gambling, and the stock market is not a casino. In gambling, fortune, luck or chance play significant role while in investing knowledge and skill are more important. In addition to this, in investing, everyone can benefit and win, while in gambling, someone’s win always means another’s loss and, on average, everyone always loses, as the game manager takes their own reward for their actions. It is good to remember that in investing, risks are usually limited and better known than in gambling.
When building an investment portfolio, it is essential to ensure that the portfolio is sufficiently diversified into various investment targets. Diversification reduces the risk of the portfolio. In investing, the risk also decreases as the investment period lengthens. The worst mistake one can make in investing is to put all the money into one risky target at once, and then, when it goes bust, to stop investing. It is not worthwhile for an investor to strive for sudden riches, but to prosper in steadily and in moderation. Occasionally, someone always makes quick wins, but most often, such efforts lead to a bad outcome due to excessive risk-taking.
Risk and return go always hand in hand
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