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Investment Philosophy

Investment Philosophy

In the investment philosophy section of your investment policy statement, you’ll articulate what’s important to you as an investor. These are the theories you believe in and plan to follow.

Things To Know

  • What is your investment philosophy?

Here are just a few questions to consider:

  • What’s my philosophy about risk?
  • What’s my philosophy about core versus noncore investments?
  • What’s my philosophy about diversification?
  • What’s my philosophy about trading?
  • What’s my philosophy about costs?
  • What’s my philosophy about taxes?

Some things to remember first

Before you buy or sell any securities, make sure that your actions reflect your philosophy. If they don’t, ask why. Maybe you shouldn’t be buying or selling that security. Perhaps your action is based on short-term performance, or a hunch about what the market is going to do. But your actions should be based on your investment philosophy.