It’s similar to choosing between non-organic eggs and organic eggs. You might want to know some of the details behind the organic eggs. Such as, what is the company’s definition of organic? Is this your definition of organic? How do they insure the quality of their organic eggs? Has this company been in business long enough to give you confidence that they are successful at providing organic eggs? How long do they need to be successful for you to be comfortable with choosing them? And, is their price for these premium eggs worth it for what you find valuable? Again, neither of these is good or bad; it is based on how it can apply to you.
It may seem extreme to compare organic eggs to a manager of an investment fund; however, the same simple principles can be applied. You need to know the manager’s philosophy. What does she see about the markets that will enable her to beat all of the other professionals she is competing with? How does she make her philosophy work in the real world? If the fund charges more than others, is it justified? How long has she been at the helm? If a manager has been doing this for some time and you find a credible philosophy and process, this may be a reason to consider the fund for your portfolio. If not, you may want look for a better fit for your investment.
Those were just a few of the observations that I made over reviewing your portfolio. Thank you for stopping by to see me today and allowing me to share my knowledge with you. I hope this information was helpful and that you can use this to determine whether or not I would be a good fit to serve you and your goals. Either way, you can use this information to ask questions and think about what works best for you.
Lauren Winkelman is a teaching assistant and graduate student at Texas Tech University.