3 Know your all-in costs
What are you paying a fund manager? Is that worth it for what he or she is doing versus say an index fund? And what are you paying a wealth manager versus what a platform company costs?
US Investors are much more advanced in their understanding of costs.
4 Ignore all tips. Ignore what’s ‘hot’
If you have been running a good engineering company for 25 years and making good margins gradually adding more customers year after year and I offered you an online dating business to buy, you would not give it a second look.
Looking at the latest hot investment sector could be seen in the same vein. You know nothing about it, so pass. However, getting some exposure to new areas of growth like technology or China might be where you might seek specialist help.
5 Trust your instincts, but your analytical reasoning too. If a scheme looks too good to be true, it probably is
Equally if there is a good company, product or investment manager that you know really well and respect you may well have an advantage over others. If you purchase that company’s shares wisely and never sell them you can just let your capital compound.
The last thing I would say about investing is that it can be enjoyable. Importantly not in a casino-like way. That is a mentality that some (sadly many quite young) are succumbing to currently that I fear might end badly for them. Instead, research and occasionally invest in a learning and problem-solving way. Then your capital can hopefully compound and you can get a little wiser on the journey .
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I am a better investor because I am a businessman, and I am a better businessman because I am an investor Warren Buffett
Hollingworth set up Holland Advisors in 2009 after a 20-year career in stockbroking and fund management. He has had a passion for value and franchise investing for many years, and Hollingworth and Holland Advisors provide investment advisory services to some of the world’s largest Investment management houses.
The VT Holland Advisors Equity Fund, launched on 21 June 2021, has been converted from the Farnam Street Capital Fund which had been in existence since 2011. The VT Holland Advisors Equity Fund is available via investment platforms including A J Bell, Hargreaves Lansdown and Share Deal Active – also via most wealth managers.
When he is not in the office,Hollingworth can be found reading anything written by great investors or business managers, swinging a golf club or trying to keep up with his wife and teenage boys on a ski slope.
Andrew Hollingsworth
hollandadvisors.co.uk andrew@hollandadvisors.co.uk
Holland Advisors London Limited is authorised and regulated by the Financial Conduct Authority. Any investment opinions in this article are those of the author only and if read by non-professional investors should neither be considered advice nor an inducement to invest in any Holland Advisors managed fund.
businessmag.co.uk JULY/AUGUST 2021 37
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