‘Take calculated risks. That is quite different from being rash’ - General George Patten
Knowing your true attitude to risk is crucial to achieving your goals. Often, through discussion, we discover that our clients’ attitude to risk is different from what they thought it was. To be too risk averse can in itself be a risk.
‘A ship in a harbour is safe. But that’s not what ships are for.’ - John A Shedd
Cash in the bank is essential, but it will not grow in any way meaningfully, especially in today’s low interest rate environment.
‘Behold the turtle. He makes progress only when he sticks his neck out’. - John Bryant Conant
Some short term risk is essential if investments are to move ahead. It is our job to manage our clients’ exposure to these short term risks. No investment goes up all the time. Knowing when you want your money back is vitally important. If you are investing for the longer term, then some short term losses can be acceptable. If you are retiring next month, they’re not.
We will aim to match the right portfolio, or portfolios, with your expectations and objectives.
Our main objective is to preserve capital in the down times, and make gains when things improve. We believe in Warren Buffet’s rules of investment. ‘Rule Number One. Don’t lose money. Rule Number Two: Don’t forget Rule One.’
Of course it’s not possible to avoid short term losses from time to time, but understanding the risks you are being asked to take is a fundamental part of the client/adviser relationship.
The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.