by Will Hepburn
Investment success is less about picking the best investments and more about not losing money when those pesky market cycles turn down.
My new book “Why Bad Things Happen to Good Investments” has the premise that no one ever buys a bad investment. Then why do so many of us take deep losses in down markets like we saw in 2001 or 2008? Because markets change and the economy changes, and investments must be able to change with the times or possibly take devastating losses.
The great American investment creed is “buy low, sell high.” That sounds pretty simple, so why it is so hard to do? Because “buy low, sell high” is a two-part goal, and to be successful one must be ready to sell at some point, which oddly is what most advisers discourage their clients from ever doing.
The industry is slanted toward buy, buy, buy, with no thought to ever selling because this approach by you makes life a lot easier for Wall Street firms, which ironically are among the most active traders in the business. So, if Wall Street changes their investments to follow the market trends, and they are considered the “smart money,” wouldn’t it be nice for you to be able to do the same?
Discover four proactive strategies in my book that you or your adviser can implement in just a few minutes each quarter without being a math whiz. Think of proactive strategies as an added layer of diversification for your savings, which may create lower risk and better results. If you want to have your adviser be proactive, tell them that. It can save you a lot in the next market decline.
Will Hepburn is a private investment manager with Hepburn Capital Management, LLC. For a free copy of Will’s book stop by 2069 Willow Creek Road in Prescott. Visit HepburnCapital.com, call (928) 778-4000 or email: Invest@HepburnCapital.com.