I’ve been a bit quiet on here lately, as I’ve been busy speaking at conferences in Melbourne, Brisbane, and Sydney. My talks have covered not only how I work with clients but also some of the key challenges faced by high-net-worth (HNW) investors.

If I were to highlight one major challenge, it would be the overwhelming abundance of investment choices available to high-net-worth investors. With access to every asset class, hundreds of thousands of investment products, and real assets both locally and globally, the sheer volume of options can be both a blessing and a curse. While these opportunities are unparalleled, they can also lead to decision paralysis or, worse, what I call “magpie behaviour”—chasing every shiny new opportunity. The outcome? An unfocused and unwieldy portfolio that looks more like a zoo than a purposeful and streamlined wealth creation strategy.

So, what’s the solution to this magpie-like behaviour? I believe every high-net-worth investor should develop a written investment philosophy. This document outlines your core investment beliefs and clarifies your objectives. It serves as your guiding star, enabling you to quickly determine when to say “no” and when to explore an opportunity further.

Many clients often ask what should be included in an investment philosophy or what it should look like. Helping individuals and families explore their beliefs and define how they wish to manage their wealth is one of the most rewarding aspects of my work, as every philosophy is uniquely personal. For instance, some clients choose to avoid property investments because they already have significant exposure in that area. Others steer clear of venture capital (VC) and limit private equity (PE) investments, preferring to focus on angel investments within their core area of expertise, where they possess deep knowledge and some level of control. Some clients believe strongly in indexing, while others do not.

To help others grasp what an investment philosophy might entail, I’ve chosen to share mine. It sets out my overarching principles and beliefs about how money ought to be managed. Yours will probably differ significantly—and that’s precisely what makes a market! It covers all the aspects I consider for my clients when assisting them in crafting their own investment philosophies. To read mine click here.

A well-thought-out investment philosophy is essential for ensuring your decisions remain consistent, rational, and aligned with your long-term goals. I believe it’s a cornerstone of effective wealth management. If you’d like help developing your own investment philosophy, feel free to get in touch for a chat.

Kind regards,

Shelley Marsh
Outsourced Chief Investment Officer (OCIO) & Founder
Wealth Differently

General Advice Warning: This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. It does not represent and is not intended to be personal advice.  Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.  We strongly suggest that you seek professional financial advice before acting.

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