There’s Always Something To Do

Should I buy or should I sell? Will the market continue to rise or is a correction imminent? Investors often spend far too much time dealing with things they cannot predict. After all, the future is unknown. 

The teams in the Gutmann Chief Investment Office invest their time much better. Our colleagues ask themselves: Which new bonds are being issued? Do we want to subscribe to them? Which companies will be reporting their earnings in the coming days or have just published them? Do we want to know more about certain companies? At the same time, we read reports, follow earnings calls and tap into expert networks. 

These are precisely the types of information that also compound over time. We deepen our understanding of individual business models and continue to expand our knowledge base. And there are times when we draw conclusions from experience and actively apply them to current issues. 

Investing in opportunities

Significant changes to the equity allocation are usually not advisable, as there are always investment opportunities to be found in individual companies. The inevitable ups and downs of the markets should ideally be considered through the share of equities of the total portfolio. At times, stock prices will fall by 50% or even more. The size of your investment in stocks must be carefully considered in advance to be able to withstand such times.

The smartest move is to simply disregard the question I posed at the beginning. Invest freely available funds whenever you can. Because there are always opportunities in the stock markets. 

US investor Irving Kahn (1905-2015) was still investing in stocks at the age of 109. He was convinced: “There's always something to do. You just need to look harder, be creative and a little flexible.”

When stock markets suddenly fall due to a geopolitical event, it doesn't matter how good the business model is. However, over time, the wheat is separated from the chaff: in the long run, the share price reliably follows the company's profits.