How is it possible for most asset managers to underperform their benchmarks and/or a "passive" portfolio quite regularly? What can a private investor do to achieve good investment results? Some answers to these questions were provided at the Savoy-Baur-en-Ville at the beginning of June 2018 by Klaus W. Wellershoff.
The excellent dinner paired with the appropriate wine suited the evening very well and attendees gained valuable insights about how to take the best decisions when managing their wealth. The main arguments of Klaus Wellershoff included:
- Investment markets cannot be predicted.
- Most economists and asset managers should be more humble about the reliability of their forecasts.
- A few asset managers are very good and regularly outperform their benchmarks.
- Investors are best positioned if they follow these principles:
- 1) define a personal investment strategy,
- 2) select the best suited asset manager via a tender process and
- 3) regularly monitor and review the strategy and the implementation by the asset manager
The event was very interactive and attendees had lots of questions, focusing around current topics such as the Italian debt situation, the Swiss Central Bank's "zero interest rate" policies and the perspectives of the Euro. Obviously, a very lively conversation took its course, as everybody was very much interested in the current economic and political affairs. As a consequence of the status quo, some aspects of how to invest money in the best possible way under these circumstances were also discussed.