Our Investment Philosophy
We advise you based on what we would do, were we in your shoes, given what we know.
All client portfolios are established on a bespoke basis.
We will establish a portfolio for your savings and investments after we have discussed our specific recommendations. We do all the work.
Each portfolio has a defined objective.
We have two primary investment philosophies which inform our portfolio recommendations, namely:
1. That the West is in an (indisputable) era of Disinflation (falling inflation) and may be heading towards long term Deflation (falling prices).
This radically alters thinking around investing from what used to work, namely, Property, Shares and Bonds. We have written of this many times. See this website for past writings on the subject.
2. We invest in quality assets at severely depressed prices, collapsed even. We have a natural aversion to assets which have already soared in price.
The means to preservation of capital and growth of capital is by buying cheaply.
If you prefer to invest in assets or be invested in assets - such as property or Western shares - which are at huge prices then you may wish to reconsider your strategies of preserving and growing your wealth.
Our client held some 40% of their funds in cash from late 2006 to late 2008. None of our clients lost in 2008 - the biggest economic and financial collapse in history.
We are in an era of disinflation or even outright deflation. If you are heavily in shares... well you have been warned.
Every client portfolio at Jonathan Davis Wealth Management has a mixture of Government Bonds - to meet the disinflation challenge - and assets which had already crashed or collapsed before we bought. For example, we materially increased holdings in Gold and Gold Mining AFTER the precious metals collapse.
So, our clients’ portfolios are to not correlated with the wider stock market.
They all share one thing in common. They all have a capital preservation stance at all times though this cannot always be achieved during short periods and capital cannot always be 100% preserved in some portfolios. The only way, we know of, to secure capital absolutely in the short term, is to place money on deposit (assuming the bank doesn't go bust and you don't have more than £150,000 deposited (joint account)!) To obtain greater returns than cash over the medium to long term you have to accept some volatility.
In 2008 - the year of the greatest wealth destruction in a very long time - our client portfolios ended broadly neutral, net of all costs. Compare that to how your adviser's/stockbroker's portfolios fared...
You need an expert wealth manager. Call Jonathan Davis on 0345 862 2919 or email him to start the process of improving your wealth management.
Please note, investments can fall as well as rise, and they will!