Our Investment Approach Is Primarily Focused Around Creating

1919 WordsFeb 17, 20178 Pages
Our investment approach is primarily focused around creating a portfolio with a relatively low risk level. Our portfolio will be diversified in a variety of investments in order to reduce the overall risk of the portfolio. We believe that diversification is an excellent way to build a portfolio that will increase the chances of a return and minimize the chances of a significant loss. Due to an increase in globalization, economies around the world are interacting with each other more than ever, causing the economies to be heavily influenced by each other. Due to the increased globalization and the uncertainty that surrounds the future, we prefer creating a long-term portfolio with a relatively low risk level. Our portfolio will consist of…show more content…
We believe that our portfolio will maximize our returns while assuming a relatively low risk. Although stocks are extremely risky, we will diversify our stocks and will limit buying and selling. Rather than constantly trading stocks in order to seek a high return, our strategy as a passive investor is to purchase stocks we believe will increase while they are trading at low prices and hold on to them for a significant period of time. Some stocks that may be beneficial to our portfolio include Palo Alto Networks Inc. (PANW), and Mastercard Incorporated (MA), Intel Corporation (INTC). By implementing this strategy, we are optimistic that our portfolio will grow at a steady rate over time. While we find investing in stocks appealing, we have also made the decision to invest in mutual funds because it offers diversification, is professionally managed, aligns with our passive investing style, and have the potential to yield high returns. For example, one mutual fund that may add value to our portfolio include First Eagle Global Fund (SGENX) whose top holdings include Oracle, Comcast, and Microsoft. As stocks and mutual funds bring a significant amount of risk, adding bonds to our investment will allow us to earn a return with a low risk. While our portfolio is primarily focused on stocks and mutual funds, allowing 15% of our portfolio to consist of bonds will provide us with a safe investment. Within each asset class, determine what type of security you want to invest in
Open Document