Today we look at the following topics What we say no to ! Bitcoin
Transcript:
Hi and welcome to today’s Arch Capital update!
Now, a lot of the time what we at Arch Capital do, do is we stop people from investing in certain things. This isn’t because we like to say no all the time, but rather there is no evidence or research that it works and is a sound investment.
A good example of this is Bitcoin.
However, we constantly review new investments for our clients. In the papers at the moment there is a company called Mayfair Financial, you might remember them – they’re also called IPO Wealth, they have advertised heavily on morning radio and in the financial press. Recently, they have collapsed.
We had a lot of our clients asking about investing in them, the ads were pretty convincing that they were maybe something worth looking at and we as a team had a look at it and said that it doesn’t sound like something we will be recommending to add to our portfolios.
This is just one example of when our philosophy has saved our clients from strife.
So, we begin to look at Bitcoin, we don’t just say no because we like to say no, but rather we consider if it makes sense as a safe investment. We have decades and decades of research on how to create successful outcomes, how to help people retire securely and not have to worry about markets, how to invest and get maximum returns while using sensible approaches.
So the question we ask is: “Does Bitcoin constitute that?”
Simply, the answer is not at the moment. It might do down the track. At the moment we see it as really speculative and there is a lot of research we can share with you as to why that is.
The bottom line here is that we are here to protect your wealth and we are here to invest sensibly.
With this in mind, one of the big topics has been sustainability investing. This is something we have included in portfolios for many years now – the Dimensional sustainability report (which we can provide to you upon request) outlines the investments in our clients’ portfolios.
It is a really interesting read about the sustainability and ethical nature of their investments. It is all about a values conversation. This is not something we force upon people, however it really is something good to consider as it is a great option to have in portfolios.
There is now the ability to have sustainable themes across all types of asset classes and we are seeing good returns there. However, its main focus is about where the world is going and we strongly believe that this theme will continue and be part of portfolios, certainly it will continue to be part of our portfolios.
Last but not least, I have my book of the week recommendation.
This book is about a man who survived the Holocaust, Eddie Jaku called ‘The Happiest Man on Earth’. This is a really good book, if you’re ever having a bad day, the survival story here is just amazing and is quite an easy read, but really worth the read.
I hope you have enjoyed this Arch Capital update, I look forward to speaking to you soon.
Nigel
