#1 Be in the Know; Or Know Those Who Are
Remember "Day Traders?" They were the individual investors who actively traded stocks during the euphoric stock markets of the Tech bubble. They often bought and sold the same stock on the same day. Usually they knew little, if anything, about the issuing company. They did not "invest" in companies. Rather, they speculated on the prices of stocks.
At Mawer, we invest in companies. We focus on companies that create wealth over time. And, we try to avoid overpaying for them. In simple terms, we invest in companies that make money and we buy their stocks at a discount. Because these companies grow and create wealth over time, we plan to hold them forever and grow with them. Also, we combine these companies into diversified portfolios that can both outperform and withstand the volatility of the stock markets. In other words, we deliver better than market rates of return at lower than market levels of risk.
Sound simple? If it were, more investors would do it and generate consistently strong returns. However, this exercise involves a great deal of work that few individual investors can afford. Also, it involves a great deal of knowledge and experience that few investors possess.
The investment professionals at Mawer know how to find companies that make money, buy them at a discount, and combine them into portfolios that will give our investors better than market rates of return at lower than market levels of risk. Our clients know this because they know us.
If you would like to learn more about how we manage money, please contact our office toll-free at (888) 549-6248, and ask to speak to a Portfolio Manager, or email us for an information package.