One simple way to boost your portfolio's performance

Warren Buffett has famously been quoted as saying: “The first rule of investing is ‘Don’t lose money.’ The second rule? ‘See the first rule’.” This might seem self-evident at first but dig a little deeper and there are valuable lessons for everyday investors, especially after 2020's strong recovery.

And it provides a useful context for Anthony Murphy, chief executive officer at Lucerne Investment Partners, who warns investors against chasing returns following the COVID-crash.

“We saw such a strong month in November 2020, with the market up around 10%. I’m starting to see a lot of investors saying, ‘Well how do I chase this performance?’”

Murphy suggests investors should focus on reducing the risk of drawdowns, rather than chasing performance. In this video, he outlines some methods for reducing the risk of drawdowns while maintaining attractive returns. He also shares some tips for identifying great fund managers before they’re widely known.

A different type of wealth management

Lucerne is Australia’s pre-eminent independent Investment Group, providing high net worth investors access to a family office-style service. We allocate to any investment that meets your objectives and we invest alongside you. Click ‘CONTACT’ to talk with us.