Intellectual rigour

We believe that successful investment comes from having two things:

  • A sound intellectual framework for making decisions
  • The ability to keep emotions from corroding the framework.

Our investment framework has six guiding principles:

1

You must have a plan

Investment decisions should only be made in the context of a Financial Plan, which identifies the return that you need from your investments in order to achieve your financial goals. The investment strategy should be designed to generate the returns required to achieve those goals with the least risk to your capital.

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Risk and return are closely related

You cannot achieve a higher return without taking on more risk – there is no such thing as a free lunch.

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Diversification is an essential means of managing risk

Investment portfolios should be diversified across asset classes and markets.

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Asset allocation determines portfolio performance

Deciding what proportion of a portfolio should be invested in each of the key asset classes is the main factor in determining how an investment portfolio will perform.

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Investment markets are efficient enough

Trying to beat the markets by using expensive, actively managed funds inevitably involves taking on more risk, which is rarely justified by the corresponding gains.

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Costs matter

Charges and taxes can have a serious impact on your wealth. The charges applied by some investment funds are eye-wateringly high.

Fortitude Financial Planners do not have access to a crystal ball. What we do have is an efficient and effective process which helps our clients to make smart investment decisions.