Investment wisdom

Investment wisdom

Wisdom from Shelby Cullom Davis

During a long-term investment journey, investors will inevitably encounter periods when they are led by their emotions. During such times investors often make decisions that can undermine their ability to build wealth. There are eight truths that investors need to understand to make the most of investment opportunities.


1]A market correction is an opportunity for the patient, long-term investor Long-term investors should welcome market corrections as an opportunity to purchase good businesses at attractive prices.
2]Stocks historically have been the best way to build wealth, despite inevitable periods of uncertainty Stocks have historically outperformed all other asset classes and protected against the ravages of inflation over long periods of time, through ever-changing market, economic and political environments.
3]Be patient and maintain a long-term perspective Over the short term, stock prices will fluctuate greatly. However, over longer time periods, stock prices should ultimately reflect their true value and patient, long-term investors may be rewarded.
4]Recognise that historically, periods of low returns for stocks have been followed by periods of higher returns Periods of poor returns for stocks provide long-term investors with the chance to purchase good businesses at lower prices. These lower prices help increase the possibility of higher future returns.
5]Don’t let emotions guide your investment decisions Keeping impulses like fear and greed in check, and maintaining an unemotional, rational, disciplined mindset is crucial to building long-term wealth.
6]Don’t attempt to time the market Over the long term, stocks historically have delivered a satisfactory return. Attempting to enhance this return by trying to move into and out of stocks based on the market environment is a loser’s game.
7]Understand that short-term underperformance is inevitable Almost all great investment managers go through periods of underperformance. When evaluating a manager, build in this expectation as it can help you to avoid making a potentially damaging manager change.
8]Utilise a systematic, disciplined investment approach Such an approach is valuable during challenging periods for the market because it allows the long-term investor to seek taking advantage of volatility— purchasing more shares when prices are low.


The following information has been prepared by PAN-Tribal Asset Management for use by Sophisticated Investors / Wholesale Clients and Investment Professionals only. No account has been taken of the investment objectives, financial situation or particular needs of any particular person. Information is provided for general information purposes only and does not contain investment recommendations nor provide investment advice, nor is it intended to take the place of professional advice. Investors should not take action in reliance on information contained on this website.


Past performance information provided on this website is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. None of PAN-Tribal, its related bodies or associates, nor any other person, guarantees the repayment of capital or the performance of the Fund(s) or any particular returns from the Fund(s). No representation or warranty is made concerning the accuracy of any data contained on this website.


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