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Growth, Value or ... ? THE INVESTMENT PROCESS IS ALL IMPORTANT
If you appoint someone to supervise your investments, it’s extremely important for you to fully understand why investments are bought and sold for your portfolio. This is called the “investment process” and there are literally hundreds of disciplines being practiced by the army of investment managers in the business.
“Growth” and “Value” disciplines are two of the better known investment approaches. But it’s not that simple, because within each of these lies a broad array of influences, refinements and strategies possessing varying degrees of importance, depending upon the practitioner.
The challenge is to select the process which best fits both your situation and your risk tolerance. You may be impressed by past performance but before deciding, you should be convinced it is a result of a disciplined process which is repeatable and not luck or something else. We have all seen the warnings about relying upon past performance which may not be repeated. Research has documented that a disciplined process which is adhered to over the long term produces the best results.
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