Interjection

Long-term and sustainable success with investment funds

I can hear it already again no more! No sooner do stock market prices fall than the augurs, who in ancient Rome were known to proclaim the will of the gods, reflexively appear on the scene. And recommend the inclined reader the one, the next again the other share. Or also other, now up-to-date particularly worthwhile seeming investments such as special ETF's or unit trust funds.

 
The Zockerei, paired with a Casinomentalität takes its course. Just as it can be observed at the roulette table after 10x red that in the "all-in" and "now nothing more can go wrong" mentality, the pile of chips on black seems to keep growing and almost escaping gravity, reaching almost to the ceiling. Nothing works any more! The ball rolls - red again. Everything gone. Greed eats brains, as is well known. And money.
 
Long-term, sustainable success in one's own personal capital investment will not come about in this hasardeuristic way.
 
Decisive are completely different factors, empirically occupied and proven:
The basis of one's own financial investments is first and foremost to be found in one's personal guidelines. Here the human being is in the center, not the product. Goals are to be defined and weighted, possibilities are to be elicited.
 
Now it is time for -no, still not the products and the hot tips- but for the development of a personal strategy. Sensibly structured like perhaps a soccer team with the defense for financially stormy times, the balanced midfield and the opportunity-rich offense for long-term returns. Individually and tailor-made according to the specifications of point 1. Don't forget the nest egg.
And only now, in the third step, the implementation with suitable products takes place. The goal for the investor and customer is a robust, risk-managed portfolio with broad diversification. No single stocks in the equity sector because of the risk.
From this sensible approach develops the essential long-term success, primarily for our clients but also for ourselves.
 
And then, and only then, can this healthy basis be used as a supplement to - and no more than - the one or other crisis and opportunity that will always occur on the capital markets. Not the other way around.
More about my current assessment soon.
 
Matthias Lippold
Economist, Investment Director Geldpilot24
 
Note: I write this line under the impression of the current war events and the suffering in Ukraine. These lines do not reflect my human feelings in any way, but focus on a purely economic point of view. They should help the reader to act rationally, especially against the background of this humanitarian catastrophe.