One of the most common questions I have been asked over the years has been “what is the best way to invest money?” or “what is the best way to grow my wealth?” I hear this from clients, journalists and particularly at dinner parties or special events. And while I’ll never reveal my strategy to investing, I don’t mind disclosing the basics of LexION Capital’s investment principals.
In order to build clients’ robust stock portfolios we diversify their investments on three scales:
First, the portfolios are diversified by geography. This means that if we believe there to be investments overseas that are the best possible investment solution for our clients, we take advantage of those opportunities. Our firm is not restricted by geographic borders and we actively search the globe for the best investment opportunities for our clients.
Secondly, we diversify by size: meaning we take advantage of large-cap, mid-cap and small-cap stocks.
Lastly, we diversify by style, with asset allocations to growth, value and blend stocks.
To answer the original question, “what is the best way to invest money?” we keep one very important thing in mind: we make sure our clients know that when it comes to investing their wealth, we remember their long-term goals and we don’t waver from our strategy.
Ultimately, what can threaten the growth of a well-diversified portfolio over time is not market fluctuation, but the tendency to shift strategy by letting emotion overwhelm logic. At LexION Capital, we develop portfolios grounded in market data, and we always keep our client’s goals in mind every step of the way.
