At a Glance
Our Philosophy
An investment philosophy refers to “the general ideology of investment practiced by an investor”.
Philosophy is different than strategy. You can use multiple investment or speculative strategies across your portfolios, whereas the philosophy is the standard that directs all strategies.
William Allan's philosophy runs on three core beliefs:
- Goals
- Repetition; and
- Defining Investment
Any undertaking to allocate your capital to an investment or speculative process must begin with goals; otherwise you substantially increase the likelihood of failure. At William Allan we strive to increase the likelihood of success more than anything else.
Once a strategy has been developed (and has proven reliable), you must be able to apply it over and over again to create wealth. Repetition is extremely important in the endeavor to becoming a successful investor.
William Allan clients have different goals, and therefore the securities used in each portfolio differ between clients. However, there is a single element that serves as the basis for beginning this process - the interpretation of the word “investment”. This is an important and often overlooked starting point to constructing a portfolio. Benjamin Graham’s book, “The Intelligent Investor”, has an excellent definition of investment, as follows…
“An investment operation is one in which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
Many investors travailing these ropes fail because they do not know if they are investing or speculating, and they have not set goals. Speculation is by no means a bad thing, or something that will not produce large profits, but it is important to know the arena in which you allocate your hard earned money so you can set your expectations accordingly and achieve your goals.
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