It’s winter, the mornings are cold and day looks grim. Dark clouds are brewing and now it’s raining. Everyone around you has an umbrella and scarf and you are wearing a straw hat that makes everyone look as they walk past.

Is standing out from the crowd such a bad thing?

To be a successful investor, you cannot constantly be swayed by changing the opinions of outsiders. Our Investment Committee is not distracted by short-term trends in the financial markets or the constant headlines and negative press we are exposed to in mainstream media commentary. Being able to maintain a long-term focus and not overreact to optimism or pessimism is critical for investing success.

Warren Buffett once said,

“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”

At The Investment Collective, we choose Australian companies that exhibit some form of “economic moat” to help protect the business against competitors.  This may include:

  • Strong branding
  • Efficiencies of scale
  • High barriers to entry
  • Switching costs

Our Investment Committee seeks out opportunistic investments where we view market pricing as not being representative of future predicted returns.

Markets will continue to rise and fall. Working alongside you to manage your investments, we help you make more informed decisions and seek to minimise your emotional burden.

If you would like to know more about how The Investment Collective can help you with your investment strategy, contact us to make an appointment today.