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7 Investment Concepts

Crews Bank & Trust Wealth Management Services Sep 2, 2022
Chart shows the probability curve in relation to investing

Contents

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:

  • The receipt of cash in the form of dividends/interest.
  • The sale of that investment to someone else.

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.
Chart of the Day Managing your Wealth

About the Author

Crews Bank & Trust Wealth Management Services
Crews Bank & Trust Wealth Management Services

Experienced professionals from our wealth management services team can help you achieve a bright financial future through investment strategies tailored to you. We’ll show you all of the options available and help you choose the ones best suited to you. We’ll provide high-quality, personal service as we work toward your goals together. Our Portfolio Managers do not receive commissions on trades; our recommendations of investments are based solely on your best interests.

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.

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