Events of the last month provide significant lessons. We have been introspecting on what we could have done differently – and there will be a time to share that with you.
However, I want to share a few other observations with you today which are topical before the event passes and memories fade.
1. The only way to protect yourself from “tail risks” is through Asset Allocation.
Read MoreThe starting point for Investors must always be Asset Allocation. In some earlier letters, we have written to you recommending you should hold some Gold/Gold Equivalents in one’s portfolio – as Insurance to guard against the “unknown unknowns” of excessive money printing and even as diversification into another Asset Class that is not correlated with Equities.
Read MoreOver the past few week, we have been asked by many partners whether “It is a good time give you more money?”
Read MoreThe money one does not want to risk Capital loss on is typically invested in Debt instruments. However, Debt Mutual funds have schemes that invest across varied risk spectrums.
Read MoreRead More“I can think. I can wait. I can fast”
Siddhartha, Herman Hesse
Solidarity is a multi-family investment office. We are often asked (by clients with high ability and willingness to take risk) why we recommend they should hold at least 10 -15% of their Investible Assets in Bonds/Liquid funds and not be fully invested in Equities; especially if clients don’t need the capital for at least 3 years.
Read MoreGlobal markets have started the year with perhaps the worst performance in over two decades. The sell-off has prompted commentary in the media “hinting of parallels with the 2008 like crisis”
Read MoreAppropriate Asset Allocation is the principal determinant of long term investment returns. We hence inquire about the client’s existing Asset Allocation as a first step in our engagement process.
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