InDome
Investment Philosophy
Investing can trigger strong emotions. During market turbulence, some investors may make impulsive decisions, while others may become paralysed, unable to execute an investment strategy or rebalance their portfolio when needed. Maintaining discipline and perspective is key to staying committed to a long-term investment plan, even during periods of market uncertainty.
Both asset allocation and diversification are based on the principle of balance. Since all investments carry some level of risk, we must navigate the trade-off between risk and potential reward by carefully selecting our portfolio holdings.
A sound investment strategy starts with an asset allocation befitting the portfolio’s objective. This allocation should be based on realistic expectations for risk and return, using diversified investments to mitigate unnecessary risks. Superior investment performance is not our primary goal, but rather superior performance with less-than-commensurate risk. Above-average gains during favourable market conditions don’t necessarily demonstrate skill; it’s the ability to deliver strong results during difficult times that proves the gains were earned through expertise, not by taking on excessive risk. Therefore, we prioritise preventing losses over chasing profits.
01. Maintain perspective and long-term discipline
02. The primacy of risk control
03. Balance