Do You Need Active Investment Management?

Just like anything in the investment industry, there are winners and there are losers. This is no more apparent than when looking at the field of active investment managers. These are the guys who say “Yes, buy this” or “No, don’t buy that”. It may sound simple, but there’s a LOT of work that goes into picking stocks that will make you a lot of money. And they’ve got to pick a lot of them. If you were just to invest in one or two stocks, you’d stand a great chance of losing it all. But by investing in lots, you stand a high chance of diluting your big wins with other picks that underperform. Do you see the problem? Investment management is a tricky game, and lots of managers fail to get their clients returns that beat the market.

But there are some that succeed, obviously. Warren Buffett has one such fund, which SLAUGHTERS the market year after year. It’s not luck. It’s about insight, experience, and timing. In order to achieve this, you’ve got to have a great team, a team like the one at MFS. MFS is one such investment management firm who beat the market most of the time. That’s great, because that’s what you are paying them for. But if it’s so hard to do, how does MFS do it? They explain that they have a three-tiered approach that works really well for them.

  • MFS cultivates a global perspective. MFS employs analysts all over the world. Managers who don’t tend to be America Myopic. They are most aware of American financial events, when the US is just a tiny fraction of the world population. By seeing world events for what they are MFS is able to give you a much more nuanced decision making toolkit than those who wear Western-tinted glasses.
  • Risk Management. MFS doesn’t act unless you are going to get compensated.
  • Long Term Thinking. MFS knows when to wait, contrary to a lot of industry noise calling for immediate action all the time.

 

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Recent Posts

One Comment

  1. Kathy says:

    Yes, we do have an active investment manager……us! No one cares about our money more than us and we do all of our own research, picking and trading ourselves. We actually don’t really trade because once we buy a stock or bond, we tend to hold it for years.

Leave a Comment

*

May the 4th Be with You: Star Wars Swag on Amazon

May the 4th Be With You: Star Wars Day Swag

It began as the punniest holiday ever but quickly grew into an earnest (if somewhat random) celebration of the long-running (and still... more →
People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
shopping a car on Craiglist, Craigslist, shopping a car

How to Shop for a Car on Craigslist

Simply at the mention of Craigslist, people automatically have a strong opinion. It’s probably because the Lifetime channel keeps... more →