Last weekend I attended the Master Investor Show 2019 in London. It’s a show where various speakers give their views on the world economy and stock markets, along with the chance to talk to over 50 companies who are exhibiting and seeking investment.
It claims to be the largest event in the UK for private investors.
So why did I decide to give up part of my weekend to attend the show I hear you ask? No it wasn’t to take a break from the kids. It was all part of my commitment to over 100 hours of Continued Professional Development (CPD) each year (Financial Advisers have to do at least 35 hours to maintain their practicing certificate) so I can stay at the top of my game when it comes to understanding what’s going on in the investing world. Plus I also enjoy this kind of stuff!
What did I learn from the Master Investor Show 2019
There were some big names from the investing world attending, including many investment fund managers from the likes of Fidelity and BlackRock, as well as reporters from leading investment magazines Master Investor and MoneyWeek.
What I found most interesting was how conflicting everyone’s views were.
One person said that banks are a good buy right now, the next person put their case against buying bank shares.
This went on and on and was of course what I was expecting. The reason for this is because no one knows what the future may hold. It’s all just predictions and guesses. Some will come good and some will not, and no fund manager can remain consistent.
The other striking thing I learnt was the fact that these professionals are very good at telling you what has happened but very fuzzy and unclear when it comes to what they expect next.
Having said all this there is technical data which I focus on and use to help me evidence and prove what the best investment strategies are over the long term. I want to know what’s worked and worked and worked.
How to avoid being confused by the Master Investor Show 2019
Rather than looking for the secret tip no one else is aware of and trying to get rich, understand this, there is no easy way to get rich quick in investing unless you are incredibly lucky.
Instead you need to focus on 3 things.
#1 – Have a plan
Don’t just invest for the sake of it. Understand exactly what lifestyle you want, how much it will cost and put in place a plan of how to achieve your target.
#2 – Diversify
Make sure you don’t have all your eggs in one basket. For example, if you felt oil was a good investment a few years ago and invested into one of the largest UK companies BP, you would have seen the value of your investment fall dramatically following the Deepwater Horizon disaster. This is an event you just can’t predict.
So instead you diversify. You buy a few oil companies and even better, lots of different sectors in lots of different countries. The idea being if one area of your portfolio is struggling, like it inevitably will at some stage, then the other part will pick up the slack.
#3 – Control costs
I’ve said many times that you can’t control stock markets but you can control costs.
1% a year extra in costs for 10 years will reduce your retirement pot by around 15%.
There are much more modern ways of investing nowadays that get you the same result, if not better, for a much lower fee.
So if you are tired of managing your own portfolio, realise you would rather be doing something better with your time, then why not consider working with a professional Financial Adviser who could support you. Contact us for a no obligation meeting at our expense.
Stock market linked investments and any income from them, can fall as well as rise and is not guaranteed. Any figures quoted are for illustrative purposes and should not be taken as a forecast or guarantee. Past performance should not be seen as an indication of future returns and clients may get back less than they have invested.