Securing a great investment strategy

The internet is a wonderful thing but please be aware – just because it’s on the internet does not mean its true! Today, more than ever we have to be much more vigilant and aware of ‘fake news’ and along side that poor advice and misinformation. This is especially important if you use the internet for your investment research – there are literally millions of articles explaining every aspect of all types of investment vehicle from cryptocurrency to fine wine or whisky investing, through to a forest in the Amazon as well as the more traditional investment asset classes.

But as we know in life, sometimes all that glitters is not gold. So we need to be ever more careful on the advice we do, or do not follow, or choose to believe. There are some simple steps to help secure a solid investment opportunity, these can be applied to almost any offering you may wish to investigate further.

Step 1

Beware of hype and sheep mentality

Todays ‘in’ investment opportunity has to be cryptocurrencies. The problem is the hype is all illustrated with hindsight. If you had invested $100 dollars into bitcoin in 2011 yes it would be worth $3,773,500 today, thats no good to an investor who wants to invest today though. Humans tend to make a lot of decisions based on fear and greed and obviously this method is appealing to both of those emotions, greed being the obvious one but also fear – fear of missing out (FOMO).

Successful, solid investments should be sought for the major part of your cash assets, by all means if you want to try investing into highly speculative areas then do so but please don’t bank on it and put your life savings into such risky strategies, you will live to regret it.

Instead do your own research and seek out a more traditional investment but ensure it gives you the returns you desire with the risk factor you are prepared to accept.

Step 2

Research, research, research

You have to be aware of what you are investing into. You wouldn’t buy a house without first looking around the property and then checking out the neighbourhood and surrounding areas, the same goes for investing. If you want to buy gold as an asset check the available options, you may be surprised at how many there are. Some examples are physical gold (coins, bars etc), Exchange Traded Funds (ETF’s) and these vary in how they invest (that is another subject on it’s own), mutual funds, stocks of related Companies and more.

If you invest into mutual funds choose the sector, (geographical and asset type) research the fund mangers track record, seek out the fund houses with the best experience in the sector you’re interested in, these are just some of the factors you need to consider. Do the amount of research you feel you need to make an informed decision.

If you’re looking at more niche investments then more research will be required, buying a mutual fund from Fidelity or Morgan Stanley is pretty safe in terms of the protection, trust and confidence you have against buying a forest fund from an obscure fund manger you’ve never heard of based in the Cayman Islands, even though the returns seem attractive. Many of these boutique funds have collapsed over recent years taking all their investors funds with them with no hope of recovery.

Step 3

Don’t put all your eggs into one basket

The basis of modern portfolio theory is to allow risk adverse investors to gain the most amount of return from a given amount of risk by diversifying their portfolio. We are all familiar with the term ‘high risk, high return’ but it doesn’t always have to be that way. There are investment opportunities available that offer investors high returns from relatively low risk investments, they are often not so mainstream and sometimes only the preserve of higher worth investors. As a retail investor these types of asset may not be readily available for you to access.

This has now changed, Highgrove Consulting is now excited to be able to offer just such an opportunity to retail investors. We have an investment class that offers the savvy investor a very attractive return over a relatively short investment horizon, all secured with UK property and direct shared ownership for investors.


Please contact us through our site to find out more – highgroveconsulting.com

Share This

Share this post with your friends!