|"Success in investing doesn’t correlate with IQ once you’re above the level of 100. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing."|
– Warren Buffett
Kennedy Black bases its investment methodology around the following core principles:
- Capital markets work. That is, we believe that markets are broadly efficient and that trying to out-smart the market, at best, leads to unnecessary costs. At worst, it introduces behavioural problems which can lead to the erosion of returns in the long run. We therefore advocate a passive investment approach.
- Risk and return are related. We believe that the only way to improve your expected investment returns involves taking more risk. By controlling the risk within a portfolio, it is possible to build bespoke investments for clients based on their individual circumstances.
- Diversification is essential. The only free lunch in finance is the benefit provided by diversification. We believe it is the only effective way to improve the risk/return profile of a portfolio. We build globally diversified portfolios incorporating a variety of asset classes (although there are plenty of asset classes we ignore).
With a focus on comprehensive financial planning, Kennedy Black can provide advice on a whole range of saving and investment opportunities. The aim is to ensure that your investments put you on the path to achieving your goals.
Among other things, we have expertise in the following sectors: