Why Financial Success Starts with a Strong Investment Philosophy

The image of financial success looks different to everyone, but we can all agree that a part of being financially successful is fulfilling our own personal financial goals – no matter what they may be. To do this, expert investors and financial advisors worldwide create financial plans with a strong investment philosophy at its foundation to begin the journey to financial success. Here’s why:

A Strong Investment Philosophy Builds Discipline

An investment philosophy is a set of beliefs and principles that guide an investor’s decision-making process. Since investing is a long and winding road, and the journey can be challenging and frustrating, a strong investment philosophy acts as an anchor from which investors base their decisions. Over a lifetime, investors will face many decisions that are prompted by events within and outside their control. Without a strong investment philosophy to inform their choices, these events can lead them into making poor decisions, damaging their long-term financial well-being.

Ultimately, an investment philosophy is a stronghold that helps maintain investment discipline no matter what surprise events may temporarily shock the market, gently guiding their reactions toward market events and positively influencing outcomes.

A Strong Investment Philosophy Develops Consistency

David Booth, Founder and Executive Chairman of Dimensional Fund Advisors, offers this advice for those pursuing their financial goals:

‘The important thing about an investment philosophy is that you have one you can stick with.’

An enduring investment philosophy is built on solid principles backed by decades of reliable empirical academic evidence. These principles help investors maintain discipline, react better to market events, and resist the siren calls of new investment fads. Only through understanding how markets work and maintaining a long-term perspective on past events can investors focus on ensuring that their responses to events are consistent with their long-term plan.

It is, therefore, crucial to have an investment philosophy you can stick with, and one that can help you stay the course even as market conditions change.

The ‘Collaborative Understanding’ Investment Philosophy

Here at Collaborative Consulting, our investment philosophy is in our name. The ‘Collaborative Understanding’ investment philosophy is centred on learning what matters to you and creating a tailored financial plan that helps you fulfil your personal financial goals. This guides our team of expert financial advisors throughout every step of the way, from the initial consultation through to implementing independent investment strategies that help investors prosper in their financial future.

Giving you personalised financial advice designed according to what your life and lifestyle will look and feel like in the future allows us to develop a realistic goal-driven roadmap to get you there. This collaborative philosophy is based on the main principle that everyone’s journeys and goals are different, and that the best financial results are always achieved through building trust and successful collaboration.

Our team of financial advisors act as experienced counsellors when responding to events and provide the foundation of a strong collaborative investment philosophy that has served us and our clients well throughout the years, helping many achieve their own versions of financial success.

To set you on a path to investing your money wisely, contact the team here at Collaborative Consulting for a free consultation today!