Investors in Values

“A wise man proportions his belief to the evidence”
– David Hume

What is the difference between Value and Price?

To understand and answer this question is to move from being a speculator or gambler, to being an investor.

Financial history gives us many examples of bubbles and foolish asset purchases, from the South Sea to the dot-com bubble. Investors are drawn into bubbles as they see assets climb sometimes to unbelievable levels, and become more inclined to invest, not less. The events of the dot-com bubble act as a tangible example of belief being about basing decisions on what you want to see, without understanding the Value. Value is about basing decisions on the true worth of an asset or idea.

To be an investor one must understand the true Value of an asset. Once this is known an investor then waits until the market provides the opportunity of paying a Price significantly lower than the Value received.

Price is what is paid
Value is what is received

At LWM we aim not to follow the herd but to get to understand a fund or idea, to evaluate its Value, and to invest where Value exceeds Price.

Our service proposition is simple

  • Understand needs and requirements and construct a plan which matches and meets them
  • Invest money the way we invest our own (we invest our investable assets in the portfolios we manage)

The ongoing service is part of the package we offer (i.e. both the initial and ongoing service come together). We do this to ensure that needs are regularly reviewed and that we can develop a long term relationship to achieve client goals.