At GeoVest, we believe that discipline and patience are the keys to great long term performance in our client portfolios. Our disciplines revolve around the concept of risk versus reward in that for each security we purchase, we want ample compensation for the risk we assume. It requires us to research each security we are looking to buy and create a game plan for the purchase and sale of that security.
Great investors have a game plan for everything that they buy. They have variables that they track to ensure that their investments are performing as expected, apart from the market price of those securities, because they know that market prices can be influenced by bad information and emotion.
To stick to their game plans, great investors need patience because it sometimes takes the market some time before they figure out what is already known by savvy investors. The investors that ultimately make a lot of money for their clients are the ones that have the patience to stick to their game plans and ride out the fickle movements of the market.
Global Economic Analysis
Our ongoing analysis of the global economy with a heavy emphasis on the United States is the starting point for all the investment decisions we make. Since changes in the economy are the biggest determinant of asset prices, it is the most critical part of our investment strategy.
We track global economic data along with anecdotal evidence from around the globe in order to understand the changes that ultimately impact the price of assets in the United States. The information that we glean from this analysis allows us to anticipate both opportunities and risks that may impact our client’s portfolios.
Business Cycle Analysis
It is well known that the economy runs in cycles. There are periods when it expands and contracts. Knowing where you are in the economic cycle is critical for making informed, profitable decisions for clients because it provides valuable insights into why companies are experiencing changes in their operations as well as what future changes will likely take place.