Investment Selection and Portfolio Management
At Mundoval Capital Management, we believe that a globally-diversified portfolio is an appropriate tool for minimizing risks and maximizing returns. We believe that wealth creation is a product of careful planning and consistent participation in the global capital markets.
We’ll create a personalized portfolio that seeks to protect your initial investment while providing a hedge against inflation and rates of return that are consistent with your objectives. We encourage our clients to embrace a long-term “stay the course” perspective despite short-term volatility and various market cycles.
Though we believe that long-term, evidence-based investment management is key to creating sustainable returns on your investments, we maintain an active presence in managing your portfolio.
Some of the strategies we can use are:
- Asset Allocation Strategies: This is one of the most important factors in a successful investment strategy. Your advisor will want to make sure that your investment aligns with your specific goals, financial profile, and risk tolerance. We will need to determine the amount of time you have to work towards maximizing your investment. Then we can determine how to best allocate your assets to pursue your goals.
- Portfolio Diversification Strategies: Diversifying your portfolio is another important strategy to minimize your risk level. Diversification involves selecting a mixture of investments across different global economies, industry sectors, and market capitalizations to mitigate your investment risks. The key advantage of diversification is that when one investment performs poorly over a particular time period, other investments may fare better during that same period.
- Dollar-cost averaging: This is a systematic investment strategy that allows you to designate a specific dollar amount towards your investments at regular intervals. This strategy can prevent you from getting emotional and reacting to market conditions, allowing you to remain invested long-term. By keeping the dollar amount of your purchases constant, it will instill discipline to buy more shares when prices are lower and fewer shares when prices are higher. This will help ensure that the average cost per unit is lower than the average price.
Remember that the risk of any investment cannot be completely eliminated. We can only employ strategies that minimize the risk.