Our investment philosophy

Supporting your ambitions through proven principles

Investment philosophy

Three pillars of portfolio building

When managing your portfolio, we follow a tried and tested approach, based on three principles:

1. Modern portfolio theory

Over the longer term, investment risk is rewarded with return.

2. Non-correlation

Asset classes with low correlation to each other are good choices for a diversified portfolio, as they can perform independently.

3. Diversification

Investing in a diverse portfolio, covering a number of different asset classes, has been shown to reduce risk.

PB Financial Planning is a trading style of Tavistock Private Client Limited which is authorised and regulated by the Financial Conduct Authority. FCA Registration 210782. Tavistock Private Client Limited is a wholly owned subsidiary of Tavistock Investments Plc. Registered Office address is 1 Bracknell Beeches Old Bracknell Lane Bracknell RG12 7BW. Registered Number 04298592.

Portfolio management based on firm beliefs

We believe:

  • market returns can be achieved at low cost through index-tracking investments
  • asset allocation is the major factor influencing investment return
  • diversity (non-correlation) reduces investment volatility and risk
  • it’s important to monitor investments regularly.

We don’t believe:

  • the majority of active fund managers consistently outperform their market
  • any asset class is more important than others
  • past performance is a guide to the future
  • anyone can accurately predict which asset classes will achieve the highest long-term returns.

Because of our philosophy, we prefer to buy index-tracking investment products. They remove the risks associated with individual stocks, and avoid underperforming active investment managers.

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