As a boutique financial consulting firm that guides institutional investors around the world, we often receive questions around the most optimal investment strategies for high-net-worth individuals, though that’s a complicated situation and where do you start?
Maybe you launched a revolutionary AI tech startup funded by the biggest Silicon Valley VCs and made hundreds of millions if not billions on the exit, an influencer making bank on social media, or maybe you got lucky with a large inheritance. Now that you have reached a level of financial status that most people can only dream of, how are you going to allocate your capital intelligently and with discipline to live the life you have always imagined for yourself and family?
Going down this path, especially when it comes to making money then managing it on a large scale, there are 3 questions to ask yourself:
1) Do you have the financial intellectual framework required to navigate the financial markets and allocate capital in a safe and disciplined way?
2) Do you have the emotional discipline to apply this financial intellectual framework correctly?
3) Are you confident in your ability to recognize the fast eddies who are on every corner deceptively strategizing how to steal your money? There have been a plethora of horror stories from the past around this.
Now that we got the above out of the way, the exact allocation of capital is a multifaceted decision for every individual or family office based on their specific goals and needs. But the core focus around portfolio management for high-net-worth individuals should be inherently focused on a diversified non-correlated asset allocation approach to investing for those seeking safety of principle and favorable risk-adjusted returns.
At The Practical Contrarian, we are governed by the scientific method with an analytical, data-driven approach to portfolio management and asset allocation. Our operationalized mindset is constructed based on well-specified investment criteria to capture the first principles of market function and remove the guesswork.
If you have questions regarding our quantitative data driven approach to capital allocation, let’s connect!