Ten commandments for the successful investor

The investment climate has remained challenging for an extended period and making consistent returns is not easy. How do investors find the areas of growth and avoid making expensive mistakes? We recently held investment seminars in both the Isle of Man and Jersey with the aim to answer this question.

Successful investing over the long term has little to do with luck and timing and, at Fairbairn Private Bank, we believe by following certain rules in a disciplined manner, that still allows some flair, it is more likely clients will receive their desired return.

Those present at the seminars heard about the ten overriding principles that guide the investment decisions we make for our clients and how they can help enhance and preserve assets for the long term. Each event opened with a brief introduction to our discretionary investment management services, followed by our head of investments, Russell Waite, who presented the bank's ten core investment principles, which we believe will help guide investors to success. The ten principles are:

A considered approach to long-term investing
Compounding is a powerful force, which volatility hampers
Asset and risk allocations are important drivers of returns
Diversification has benefits
Risks are multi-dimensional and need to be properly understood
The price you pay is an important determinant of future returns
Emotions erode the value of rational decision making
Costs are important, as are taxes
Forecasting is difficult and assumptions need to be carefully considered
Sound stewardship principles will increase the odds of clients meeting their goals

If you would like to receive a copy of the presentation slides or to find out more, please contact either Andrew Nicholson on +44 (0)1624 645000 in the Isle of Man or Ben Stott on +44 (0)1534 887889 in Jersey.

Our next seminars are being planned for Spring 2011. Further details will be available closer to the time.