{"id":104,"date":"2016-09-18T23:02:35","date_gmt":"2016-09-18T23:02:35","guid":{"rendered":"https:\/\/nestegginvestments.co.nz\/?page_id=104"},"modified":"2025-02-19T22:39:13","modified_gmt":"2025-02-19T22:39:13","slug":"investment-principles","status":"publish","type":"page","link":"https:\/\/nestegginvestments.co.nz\/index.php\/investment-principles\/","title":{"rendered":"Investment Principles"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-52 alignright\" src=\"https:\/\/nestegginvestments.co.nz\/wp-content\/uploads\/2016\/07\/nesteggpic-300x206.png\" alt=\"nesteggpic\" width=\"300\" height=\"206\" srcset=\"https:\/\/nestegginvestments.co.nz\/wp-content\/uploads\/2016\/07\/nesteggpic-300x206.png 300w, https:\/\/nestegginvestments.co.nz\/wp-content\/uploads\/2016\/07\/nesteggpic.png 521w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>I subscribe to investing, not speculating.\u00a0 Investment advice is guided by a number of simple yet powerful principles and philosophies.<\/p>\n<h5><span style=\"color: #ff0000;\">Asset allocation is the biggest determinant of overall returns<\/span><\/h5>\n<p>The proportion of investments in each asset class (equities, property, fixed interest, cash) will have the biggest influence on your portfolio&#8217;s long term returns, and its volatility.\u00a0 Getting the asset allocation right for each investor is critical.<\/p>\n<h5><span style=\"color: #ff0000;\">Returns and risk are correlated<\/span><\/h5>\n<p>There is no getting around this.\u00a0 Higher expected returns over the long term come with the likelihood of greater volatility &#8211; more (and more pronounced) ups and downs.\u00a0 If you aim for greater investment returns, you will need to accept more volatility, including periods of underperformance, and be prepared to stay the course.<\/p>\n<h5><span style=\"color: #ff0000;\">Diversification reduces risk<\/span><\/h5>\n<p>While it is tempting to try to &#8220;pick a handful of winners&#8221;, there is plenty of academic research that shows that a well diversified portfolio will have similar expected returns, but a lower risk profile than a less well diversified portfolio.\u00a0 Diversification is important across asset classes, industry sectors, geographies and management styles.<\/p>\n<h5><span style=\"color: #ff0000;\">Costs matter<\/span><\/h5>\n<p>The amount of fees and other costs you pay can have a significant impact on your portfolio&#8217;s long term performance. Management fees are closely scrutinised and investment recommendations will often include low cost index-tracking investments.<\/p>\n<h5><span style=\"color: #ff0000;\">Investment discipline is critical<\/span><\/h5>\n<p>Human emotions can sometimes lead to catastrophic investment decisions.\u00a0 Advice provided can help you stay disciplined, ride out market declines when they occur, and avoid making poor emotion-fueled investment decisions.<\/p>\n<h5><span style=\"color: #ff0000;\">Time not timing<\/span><\/h5>\n<p>As an investment adviser I am not overly focused on studying charts, trying to time the market, or speculating on the future.\u00a0 Instead I aim to help investors construct a well structured portfolio of quality investment assets to meet their particular needs, and to monitor and adjust the portfolio over time.\u00a0 Time invested, not timing, is more important for long term success.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I subscribe to investing, not speculating.\u00a0 Investment advice is guided by a number of simple yet powerful principles and philosophies. Asset allocation is the biggest determinant of overall returns The proportion of investments in each asset class (equities, property, fixed&hellip; <\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"class_list":["post-104","page","type-page","status-publish","hentry"],"aioseo_notices":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/nestegginvestments.co.nz\/index.php\/wp-json\/wp\/v2\/pages\/104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nestegginvestments.co.nz\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/nestegginvestments.co.nz\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/nestegginvestments.co.nz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nestegginvestments.co.nz\/index.php\/wp-json\/wp\/v2\/comments?post=104"}],"version-history":[{"count":14,"href":"https:\/\/nestegginvestments.co.nz\/index.php\/wp-json\/wp\/v2\/pages\/104\/revisions"}],"predecessor-version":[{"id":592,"href":"https:\/\/nestegginvestments.co.nz\/index.php\/wp-json\/wp\/v2\/pages\/104\/revisions\/592"}],"wp:attachment":[{"href":"https:\/\/nestegginvestments.co.nz\/index.php\/wp-json\/wp\/v2\/media?parent=104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}