Long-term investment horizons are often talked about, but not always practiced. For most clients, investment goals are measured in years (or maybe even decades). But many investment professionals feel the need to prove their worth in quarterly increments (this can be for a host of varying reasons, but we see it all the time).
At CDI, we feel that a myopic focus can create a misalignment between clients’ actual goals and the investment advice they receive. To that end, two of our lead Portfolio Managers sat down to discuss why our investing philosophy (and the corporate culture that fuels it) at CDI is different, and why we believe it leads to better alignment between our clients’ goals and the returns we seek to achieve.
1. Long-term focus allows for better investment decisions
- By looking at a 5-year horizon instead of the next quarter, investors can focus on the fundamentals of a business
- This approach helps to eliminate short-term noise and better identify long-term trends
2. Short-term pressure is prevalent in the investment industry
- Many firms chase short-term returns, even if they claim to have a long-term focus
- Cultural hurdles within organizations prevent the execution of a true long-term strategy
- Investment professionals often need to prove their value in shorter time periods than the long-term horizons of their clients
3. Creating a culture of long-term focus is essential
- City Different Investments has been intentional in cultivating a culture that aligns with long-term investment strategies
- The firm ensures that the outcomes of its clients and investment teams are in harmony
4. A strong partnership with clients is crucial for long-term success
- A key component of a long-term approach is fostering a transparent and robust partnership with clients
The information and statistics contained in this communication have been obtained from sources we believe to be reliable but cannot be guaranteed. Any projections, market outlooks or forecasts discussed herein are forward-looking statements and are based upon certain assumptions. Other events that were not taken into account may occur and may significantly affect the returns or performance of these investments. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product, or any non-investment related content, made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. No discussion or information contained herein serves as the provision of, or as a substitute for, personalized investment advice. To the extent that a reader has any questions regarding the applicability above to his/her individual situation of any specific issue discussed, he/she is encouraged to consult with the professional advisor of his/her choosing. City Different Investments is neither a law firm nor a certified public accounting firm and no portion of this content should be construed as legal, tax, or accounting advice.