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How Our Approach Delivers Long Term Growth

As the old saying goes, the best things in life come to those wait. The idea that patience and careful planning often lead to the most rewarding outcomes is something that resonates with many people. In a world that often prioritises instant gratification, the value of playing the long game is easy to overlook. Being deliberate, staying focused, and knowing when to wait can set you up for success in ways that rushing or acting impulsively can't.


Sometimes, it’s about trusting the process, understanding that good things take time, and knowing that the journey itself can be as rewarding as the destination.

At Reeves Independent, we couldn’t agree more. Investing with a long-term perspective can often yield more sustainable and rewarding results compared to the short-term volatility of day trading. Investment growth is vital to a successful retirement. That’s why Reeves Independent are committed to guiding clients through a disciplined, careful investment strategy. By focusing on the long game, you help ensure that decisions are based on solid fundamentals rather than reacting to the latest market fluctuations.


This approach also allows for greater alignment with clients’ broader financial goals, since it’s less about timing the market and more about being patient, understanding risk, and taking advantage of compounding growth over time.


Why active management is important for investment growth

At Reeves Independent, we take an actively managed approach to our clients' portfolios, distinguishing ourselves from day trading by making adjustments only when market conditions suggest lasting shifts, or when we identify opportunities with long-term growth potential. Our investment decisions are grounded in thorough, ongoing research, drawing from both primary and secondary sources of information. We make changes to portfolios when our analysis indicates that market conditions may pose risks that could hinder long-term returns. All our decisions our geared towards achieving investment growth for our clients.

We believe that, over the long term, investing in the stock market is typically a positive-sum game - where the value of stocks, both individually and collectively, tends to rise over time, creating potential for investment growth and wealth accumulation.


In contrast, taking a short-term approach to investing in any asset class is often a zero-sum game, where one person's gain is another's loss. Investors who hold assets over a longer period, however, are more likely to see a return on their initial investment, positioning themselves as ‘winners’ rather than engaging in short-term trading, which can increase the risk of becoming a ‘loser’ in a fluctuating market.


How Reeves handle portfolio management

Although we do not actively trade on the stock market, we offer an active and passive approach to investing, which is reflected in our main strategies – core and tactical. Whilst both strategies are actively managed, and several changes can be made per annum, we do not manage these portfolios with a day-trading approach.


There are significant risks to trading funds within a short period of time. Portfolios traded on a day-to-day basis can capitalise on returns from short term movements in the market, however profit margins are generally razor thin.

To make the significant returns, a considerable amount of capital has to be traded. The potential of making returns comes with the potential to lose a significant amount of money. This is unsuitable for our clients’ money, whose investments are made up of retirement funds and life savings. There is a cost involved with trading funds, something we try to minimise when making our own changes. Whilst this doesn’t drive our investment decisions, trading on a short-term basis would include costs that could potentially diminish returns. We believe this approach is not ideal for clients seeking strong investment growth and a prosperous retirement.


There are risks associated with not adjusting our clients' portfolios when market conditions change. If adjustments aren’t made, negative returns can persist longer than necessary. However, instead of frequently altering underperforming assets, we manage risk through diversification, which helps cushion portfolios against volatility.


Our portfolios are designed with a range of potential outcomes in mind. For example, in Q4 2021, we proactively reduced our exposure to fixed-income assets, particularly bonds, in anticipation of interest rate hikes that we expected would drive bond yields lower. On the other hand, during the pandemic, we seized the opportunity to purchase growth stocks at a market dip, ultimately benefiting from their strong recovery and realising significant returns when the market rebounded.


It’s important to note that investment performance is not guaranteed, and clients' capital is always at risk. However, we believe that a long-term investment strategy focused on capital growth helps mitigate short-term volatility and generally leads to stronger returns over time. For this reason, we conclude that a day-trading approach is not suitable for managing our clients’ capital and our approach is the best way to create investment growth for our clients.


Ready to take control of your financial future?

At Reeves Independent, we’re committed to helping you achieve your long-term financial goals through careful, strategic investment management. Whether you're planning for retirement, growing your wealth, or securing your financial legacy, our experienced team is here to guide you every step of the way.


The contents of this post are not intended as and should not be taken as advice. Any actions taken on your financial products may be irreversible and could negatively impact your financial planning, so we recommend seeking personalised financial advice before acting. Investment performance is not guaranteed, past performance is not an indicator of future performance, and you may get back less than your original investment.

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