Before looking at investment planning and strategy, it is important to take a closer look at the galaxy of investments and markets where investing takes place. Understanding how markets work, how different investments work, and how different investors can use investments is critical to understanding how to begin to plan your investment goals and strategies.
The capital markets developed as a way for buyers to buy liquidity. In Western Europe, where many of our ideas of modern finance began, those early buyers were usually monarchs or members of the nobility, raising capital to finance armies and navies to conquer or defend territories or resources. Many devices and markets were used to raise capital,For a thorough history of the evolution of finance and financial instruments, see Charles P. Kindleberger, A Financial History of Western Europe (London: George Allen & Unwin, Ltd., 1984). but the two primary methods that have evolved into modern times are the bond and stock markets. (Both are discussed in greater detail in Chapter 15 "Owning Stocks" and Chapter 16 "Owning Bonds", but a brief introduction is provided here to give you the basic idea of what they are and how they can be used as investments.)
Investments can make a big difference in planning for the future and building wealth. But those that are inexperienced and try to go it alone without help from asset management firms can end up losing a lot of money. Our vision is to help our clients achieve their financial goals by successfully managing their investments using our long-established prudent valuation-based approach. We strive to outperform our clients’ investment objectives steadily over time, because consistency is the key to successful investing.
