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What life can teach us about successful investing

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By Capital Partners Markets and Investments

The Capital Partners’ investment philosophy is built on evidence and authenticity. This strategy drives our decisions, with many of our most important investment theories reflecting a common-sense approach. Wealth Adviser Rakesh Shah is a Capital Partners veteran, motivated to help his clients live their best lives. Rakesh conveys that many interactions we live and see in everyday life simply reflect the basic principles of successful investing. Drawing on the experiences of his mum, he conveys how logical and straightforward thinking can lead to extraordinary outcomes.

Through the points below, we hope you can refamiliarise yourself with the investment philosophy framework we want for you.

Be diversified

Diversification is one of the most important theories of investing. Simply put, it means investing across different companies, industries, and economies. Your portfolio should be as broad as possible to cushion your losses if an area of your portfolio underperforms.

Emphasising the prevalence of a diversified approach in all areas of life, Rakesh shares his mother’s first dabble into the business world. He explains that she learned how to create wall hangings to sell to her local community. In this process, she realised that she needed to broaden her range of products to meet demands. As a result, she taught herself stitching and embroidery, expanding her skillset while generating extra income.

Rakesh’s mum was implementing the Golden Rule of investing, a principle that is neither ground-breaking nor modern, yet crucial. Adhering to the diversified approach, your advice team look for superior options, so you are better set to achieve your goals. Together with your team, we encourage you to have regular conversations around your objectives so that we can maximise your long-term success through diversification.

Get comfortable with being uncomfortable

When investing, certainty is in short supply, but our support is always available. Your team is there to help you navigate a constantly changing world. We encourage you to get comfortable with being uncomfortable so that you can remain focused and confident in your plan the next time markets take a turn.

Rakesh reflects on his mother’s experience to draw parallels in making uncomfortable decisions with positive outcomes. Emphasising the chaos of Kenyan traffic, where road rules are rarely followed, Rakesh explains that his mother often left the safety of her car to direct traffic and clear the congestion. The reward of such bravery resulted in a faster journey home instead of battling hours of traffic. With this anecdote, he conveys that it almost always requires a new level of courage to make uncomfortable but necessary decisions.

Investors will always experience periods of uncertainty. It is one of the risks versus reward trade-offs. Knowing that your team is here to support you through whatever life may throw at you next is instrumental in helping you to make better investment decisions. When markets wobble, and the urge to act can feel irresistible, you will be better able to resist the temptation to panic and sell.

Remember that you never have to make uncomfortable decisions alone, and a diversified strategy will keep you on track for the long term, always bearing the most rewards. We encourage you to have conversations you may find uncomfortable with your advice team as they are there to help. Your confidence will grow by understanding your unique strategy and our systematic, robust approach. Investing theories aside, perhaps we all have a thing or two to learn from Rakesh’s mum.




The information provided on this site is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different and you should seek advice from a financial planner who can consider if these strategies and products are right for you.

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