Our Investment Philosophy
Today people over the age of 55 face economic conditions much different than previous American retirees. The media attempts to make parallels to past decades. But this situation is different – much different. The new economy is wired in a completely different way and the new rules are not in your favor.
When you look at some of the worlds greatest investors, Warren Buffet - Peter Lynch - Sir John Templeton - George Soros - Jim Rogers, they all have two things in common. First, they all have their own investment system. Each one is different, but this is what they do have in common. They have trust and confidence in their system, even when it makes them “look stupid”.
Remember back in the late 90’s, when all the ‘smart money’ was going into tech stocks, before the tech bubble burst? Tech stocks were never part of Buffet’s ‘system’ so he never owned any of them. And for a while he “looked stupid”. The media had all kinds of articles (and magazine covers) attacking him for being out of touch with the new economy, someone past his prime and ready to be put out to pasture.
Where is Buffet today? Right back on top! Why? Because, he has...
Trust and Confidence In His System
Second, they avoid large losses; look at the chart to the left. On the far right, a 50% loss takes a 100% gain just to get back to break even. Impossible? No, but almost. Now look at the far left. A 10% loss only needs a 11% gain to get back to break even.
The world’s greatest investors know the true secret to investing success is…