Be inspired by the greatest fund managers
How can you find your own investment process ? And which companies do you have to analyze ?
You have to take your inspiration from de greatest fund managers.
Look at their investment process through their website, and have a look at their trimestrial information letter and see which stock have they picked and bought.
It's your turn to appropriate the best investment process that fits you.
I'll give you some investment companies, that inspire me right now :
i) Investment companies specialised in the "tech" and "growth"
ii) Investment companies specialised in "value investing"
And what about you ? Which investment company are you inspired from ?
Baillie Gifford Investment Process : " We keep it really simple "
Since 1987 it has generated more than 9 per cent per annum for our clients, net of all fees and expenses. The secret to the Fund’s success is simple but it’s an approach that isn’t necessarily easy to enact. A large part of that is due to how complicated the investment world has become. It is our belief that you don’t need complexity for success.
1) Staying focus : we focus on the long term rather than trying to second guess short-term trends or themes in the market.
2) Simplicity : typically, the fund will have 75 per cent invested in equities. This is the asset class that will drive capital growth. However, it’s important for the fund to have a meaningful allocation (typically 25 per cent) to fixed income and cash. This allows the portfolio to be more balanced than if it were invested in just one asset class
3) Consistency : we are patient investors. We hold great companies for an average of 7.5 years. Patience is doubly important because it can take a long time for companies to be successful. It can therefore take several years to be rewarded in share price terms. As the investment world has become more complex, the consistency of our approach has become more differentiated. We believe that it can make a real difference to your returns.
4) Repeatability : as an independent, private partnership founded in 1908, and fully owned by 46 working partners, Baillie Gifford has a huge advantage. The partnership structure provides stability, affords continuity and enables us to take a long-term view in all that we do. This is important because successful investment management is not easy. It requires dedication, independent thought and a long-term perspective.
5) Solving the puzzle : the aim of the Managed Fund is to grow our clients’ capital over rolling five year periods. By staying focussed on what’s important and ignoring distractions, the Managed Fund has weathered investment storms over the past three decades and delivered great long-term performance, net of fees. And keeping fees low and transparent (the ongoing charge is 0.43 per cent) has been a key part of our approach because costs are important to returns. Put into pounds and pence, an initial investment of £10,000 in the Baillie Gifford Managed Fund on the day of its launch in 1987, would now be worth £210,452, net of all fees and expenses*. However, if we had charged the same fee as the median UK managed fund, that same investment would be worth around £175,500.
*Past performance is not a guide to future returns.