Intelligent Investing : A Guide to the Practical and Behavioural Aspects of Investment Strategy

Intelligent Investing is first ever practical guide for investors on how to initiate and conduct a strategic planning exercise. Guy Fraser-Sampson explains the concepts and behavioural factors likely to be encountered, and shows how a clear understanding of an investor's strategic positioning flows naturally into good asset allocation practice. Based on many years of practical experience, Guy Fraser-Sampson describes how many of the world's large institutional investors operate entirely without any proper strategic plan. Even more worryingly, most have never even discussed basic strategic issues, or have any clear understanding of what strategy actually is. Instead all too often, thinking at the strategic level is simply skipped and some arbitrary target return is chosen, perhaps based on peer benchmarking. This book offers a totally new approach to Investment Strategy based not just on the author's own experience but also on his ground-breaking business school module for MBA students. It shows not only how the process should be taken forward within an organisation, but all the traps which lurk in wait for the unwary. In particular it explains how to apply emotional intelligence to the investment strategy process since it is usually behavioural issues, whether individual or organisational, which get in the way. As well as offering practical guidance on the setting of investment strategy the book considers different approaches which can be adopted in practice including risk exposure investing, trend following, and Multi Asset Class investing. Whatever the approach, however, the book's central theme is that there is no such thing as a "one size fits all" solution. The closing chapters give some insight into what the future might hold for investors and investment managers alike, including a frank assessment of the possible risks posed by government and central bank actions. It also takes a robustly sceptical view of the traditional financial treatment of concepts such as liquidity, volatility and rational investors Based On Many Years Of Practical Experience, Guy Fraser-sampson Describes How Many Of The World's Large Institutional Investors Operate Entirely Without Any Proper Strategic Plan. Even More Worryingly, Most Have Never Even Discussed Basic Strategic Issues, Or Have Any Clear Understanding Of What Strategy Actually Is. Instead All Too Often, Thinking At The Strategic Level Is Simply Skipped And Some Arbitrary Target Return Is Chosen, Perhaps Based On Peer Benchmarking. This Book Offers A Totally New Approach To Investment Strategy Based Not Just On The Author's Own Experience But Also On His Ground-breaking Business School Module For Mba Students. It Shows Not Only How The Process Should Be Taken Forward Within An Organisation, But All The Traps Which Lurk In Wait For The Unwary. In Particular It Explains How To Apply Emotional Intelligence To The Investment Strategy Process Since It Is Usually Behavioural Issues, Whether Individual Or Organisational, Which Get In The Way. As Well As Offering Practical Guidance On The Setting Of Investment Strategy The Book Considers Different Approaches Which Can Be Adopted In Practice Including Risk Exposure Investing, Trend Following, And Multi Asset Class Investing. Whatever The Approach, However, The Book's Central Theme Is That There Is No Such Thing As A One Size Fits All Solution. The Closing Chapters Give Some Insight Into What The Future Might Hold For Investors And Investment Managers Alike, Including A Frank Assessment Of The Possible Risks Posed By Government And Central Bank Actions. It Also Takes A Robustly Sceptical View Of The Traditional Financial Treatment Of Concepts Such As Liquidity, Volatility And Rational Investors. 1. What Is Strategy? -- 2. Strategy And Investment -- 3. Conducting The Process -- 4. What Sort Of Investor Are We? Different Perspectives On Liquidity And Volatility -- 5. Swot Analysis For Investors -- 6. What Are We Trying To Achieve? -- 7. Asset Allocation: Theory And Practice -- 8. Asset Allocation In Practice -- 9. How To Access Asset Types: Selecting Passive And Active Managers -- 10. New Developments: Trend And Risk Factor Investing -- 11. Ten 'do' And 'don't' Guidelines -- 12. Concluding Thoughts: Where Are We Going? Guy Fraser-sampson. Includes Index. Front Matter....Pages i-vi What Is Strategy?....Pages 1-12 Emotional Issues and Their Effects....Pages 13-24 Conducting the Process....Pages 25-37 What Sorts of Investor Are We? Different Perspectives on Liquidity and Volatility....Pages 38-51 SWOT Analysis for Investors....Pages 52-66 What Are We Trying to Achieve?....Pages 67-78 Asset Allocation: Theory and Practice....Pages 79-91 Asset Allocation in Practice....Pages 92-106 How to Access Asset Types: Selecting Passive and Active Managers....Pages 107-121 New Developments: Trend and Risk-Factor Investing....Pages 122-136 Ten ‘Do’ and ‘Don’t’ Guidelines....Pages 137-152 Concluding Thoughts: Where Are We Going?....Pages 153-165 Back Matter....Pages 167-173