Long Term Investing is the Subject of This Monday Night Live Where Derek Talks to Matt Tumbridge a Financial Advisor
In his presentation titled “Everyone wants to be Warren Buffett”, Independent Financial Advisor (IFA) Matt Tumbridge delves into safe investing strategies for the future. He has a wealth of experience in the industry, having run his own sales and marketing business, worked as an MD in a large insurance operation, and now running his own IFA business.
Matt starts by discussing the image of Warren Buffett, often portrayed as a “lovely gentle granddad type character” who lives in Omaha, Nebraska, but notes that there are some aspects that are left out of that story, such as his $8 million California and holiday home. He also stresses that Buffett’s best returns have not come from reading accounts and PR, but from having people in the field gathering intel and understanding the business more intimately.
He advises looking into blue-chip index funds that are invested in the world’s best companies and making sure they are within the financial services compensation scheme for added protection. He also mentions venture capital trusts, real estate investment trusts, and crowdfunding as options to consider but cautions that they may not always result in a positive return.
He also highlights the importance of having a tightly defined fund objective and having a sound financial plan in place before investing. Additionally, he mentions the importance of understanding one’s risk appetite and using a risk profile questionnaire to determine it, but notes that some advisors don’t find them to be very effective.
Furthermore, Matt emphasizes the difficulty of predicting how long well-known companies such as Amazon, Microsoft, and Apple will be at the top of the market. He also stresses the importance of understanding what’s happening behind a company’s report and accounts and not just relying on the trade press.
In summary, Matt’s presentation emphasizes the importance of understanding risk and investing in a diversified portfolio of blue-chip index funds that track the world’s best companies and are within the financial services compensation scheme, to ensure safety and beat inflation in the long run.