We follow a scientific approach to investing client money and like all good science, this is evidence based. We have studied the research carried out by many of the most brilliant financial academics in the world, a number of whom have gone on to receive Nobel prizes for their work. You can hear from one of those Nobel Prize winners here, explaining how stockmarkets are efficiently priced and why active fund managers find it difficult to consistently outperform them.
Our aim is to provide you with a successful investment experience, whilst carefully controlling risk. The approach is also designed to cut out many of the excessive costs often associated with fund management, and of which you will start to read more of in the media.
In many ways it is easier to explain what we don’t do. We don’t try and time markets or when is the best time to invest. Evidence shows this is extremely hard to do and those that do achieve it often do so mainly by luck. There are so many market participants (private and institutional), placing millions of trades on an hourly basis, that we believe markets must be efficient. We certainly would not pretend to have more knowledge about the market than all of those market participants combined.
We promise never to advise you on which is the best stock, or which fund will deliver the best performance. Again, evidence shows this is costly and success is based largely on luck.
So what do we do?
We diversify your investment to control risk in line with your risk appetite. We use some of the lowest cost funds available, even to the large institutional investors, to give you the appropriate investment and risk exposure. Finally, we aim to educate you about your investment strategy, and manage your expectation so that you don’t get any major surprises.
For more information on Oak Barn Financial Planning’s investment philosophy, click here.
To discuss your investment requirements please contact us.