Top 7 Investment Concepts by Samuel A. Kiburz:
1. Investments always return to the mean. Deciding where the mean is can be the hard part.
2. On a long enough timeline, all investments have the same return. That timeline, however, may be longer than your life span.
3. The price of an investment is only important on the day you buy it and the day you sell it. The price in between is meaningless.
4. Memories are long when times are good and short when times are bad.
5. Donald Rumsfeld's famous quote, "It's not the known knowns, or the known unknowns, it’s the unknown unknowns that worry me" reminds us that these unknown unknowns are where true investment risks lie.
6. Returns come from one of two ways:
7. Investments can be put on a probability curve where there is a direct relationship between risk and return. Combining both and knowing how they look is the most important determinant if an investment is appropriate for a client. This concept is today’s Chart of the Day.
Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.
Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.