When Active Investing is the Best Strategy
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Transcript of When Active Investing is the Best Strategy
welchllp.com
GROUND RULESQuestions
• Attendees are in listen-only mode• This webinar is being recorded for future on-demand playback
• Tweet questions & comments to: #WelchExpert
Windows Mac Tablet
Micheal Burch, CPA, CA, CFPManaging Partner – Welch [email protected]@WelchLLP
Kevin Charlebois, CFAPresident & Chief Investment Officer, Brookfield Soundvest Capital Management Ltd. [email protected]
Michael G. Adams Senior Vice President, Brookfield Soundvest Capital Management [email protected]
PRESENTERS
PASSIVE INVESTING
Index Funds or ETFs
Same securities in the same proportions as
an index (TSX, S&P, Dow Jones)
Index Funds do not aim to beat the market
ACTIVE INVESTING – WHAT IT’S NOT
Predicting the future
Timing the market
Undisciplined stock picking
WHAT APPROACH DOES AN ACTIVE INVESTOR TAKE?
Looks at the stock market as a “market of stocks”
Considers an investment in a stock as an opportunity to
buy a piece of a successful business
Builds a portfolio by judicious security selection
STOCK SELECTION
Management
Microeconomics
Valuation
Reward/risk ratio
ACTIVE MANAGEMENT – ADVANTAGES
Flexibility
Hedging
Risk management
Tax management
RISK MANAGEMENT
Asset allocation
Patience
Time Horizon
Sell discipline
FEES
Fees for active investment are generally around 1% (much less
than the current mutual fund)
Active investment fees should be covered by better than
benchmark performance over most 5 and
10-year rolling periods
POINTS TO REMEMBER
Long-term asset growth depends on
investing in companies most likely to
succeed in the future
Risk management is paramount
SELECTING AN ACTIVE MANAGER
Trust
Service
Long-term track record
Reasonable & transparent fees
Independence
Micheal Burch, CPA, CA, CFPManaging Partner – Welch [email protected]@WelchLLP
Kevin Charlebois, CFAPresident & Chief Investment Officer, Brookfield Soundvest Capital Management Ltd. [email protected]
Michael G. Adams Senior Vice President, Brookfield Soundvest Capital Management [email protected]
Q & A
The Intelligent Investing Series - Part 3:
Evidence-based Investing VS. Active Investing: The Debate
Tuesday, Feb. 23rd, 2PM
Featured guest speaker:
William Chin, MBA, Portfolio Manager - Caldwell Investment Management Ltd.
Look for the registration link at www.welchllp.com
or in our follow-up email!
THE SERIES CONTINUES…
