Today marks the thirtieth anniversary of an investment approach developed to aid investors who were searching for a path to long-term wealth creation.
Back in 1986, the term “portfolio approach” was often met with blank stares while the listener waited for a breathless tale of a “can’t miss” stock idea. Goodreid was amongst the first retail investment managers who preached diversification and portfolio structure, and even openly talked of how they’d approach inevitable stock loss situations, in an unemotional and measured way.
From its early days, Goodreid also focussed on long-term results, knowing that any conclusions of short-term success or failure were likely more emotionally impactful than fundamentally meaningful, and ran the risk of throwing the investor off a successful path.
So here are a few things we’ve learned over three decades of portfolio management;
That it’s easy to be a successful investor during the good times, it’s your actions during tough times that differentiates you from the “average” investor.
That emotion is the enemy of successful investors.
That there is ALWAYS a crisis.
That today’s crisis has increased importance, simply because it is today.
That understanding the difference between strategy and tactics is critical to a successful investment plan.
That over time an economy will grow and that good companies within that economy will grow faster. (See our blog of Feb 15, 2016 titled "Trust The Math").
That the market will pay a premium for faster growth.
That Goodreid is living proof that active management works. A dollar invested with Goodreid in 1986 is now worth over $20, well ahead of the performance of the market.
The trust of thousands of investors over the years has allowed Goodreid to flourish. We are thankful every day for that faith and friendship.