At GenVest, we believe that investments are based upon individual circumstances and that there isn’t any magic pill as some experts out there advocate for. At the core we do believe in these principles.

Long Term Investing: While it can be entertaining and sometimes difficult to avoid, tracking short-term price movements does not lead to investment success. We believe in looking at long-term fundamentals that will provide sustainable growth. The buy and hold strategy itself will pay off for those who are patient over the long-run. 

Market Inefficiencies are Rare but do Exist: Some markets are extremely efficient and thus difficult to earn any excess returns on which is why beginners should invest in passive strategies(ETFs). However there are inefficiencies in the market where through strong research can be exploited from active management.

Concentrated Diversification: This seems extremely counterintuitive but let us explain. Diversification is no doubt a good thing to protect investors from massive losses, however we don’t think that you need a portfolio of 100 stocks to get there. A concentrated strategy can also be diversified intelligently, allowing for the “best ideas” to generate returns above the benchmark. 

Risk is the Permanent Loss of Capital: Cycles and down-markets will occur and risk should not be measured in terms of volatility (especially for young investors) but rather the loss of your initial investment. As a younger investor one can withstand volatility and time can be on your side when you hold shares of great companies.

Equity: Dependent on your age, situation and ability to bear risk, equity investment is a leading way for young investors to get started. Over the long term, returns from equity have far outpaced those of fixed income and alternative investments. While past performance is not indicative of future returns, patience has paid off with long term equity outperformance.