The Oxford Club recently published an article to advise investors on the four main strategies they can use to grow their wealth.
That is the mission of the Oxford Club, a Baltimore-based network of 157,000 investors and entrepreneurs in 35 countries. They find the top experts in all kinds of investing, and those experts give Club members the benefit of their latest research into investments that have high potential and low risk.
The first Oxford Club investment strategy is to have a well-balance, diversified portfolio. People should spread their risk out over different kinds of asset classes as well as different companies.
The Club’s second strategy calls for everyone to have an exit strategy. You should never fall in love with an investment. Or, if you do fall in love, don’t marry it. Sometimes market conditions change, and the same investment that made you a lot of money last year is now going down the tubes. Know when to get out.
An important aspect related to having a well-balanced and diversified portfolio is position sizing. You’re not really diversified if 90% of your capital is in just one stock even if you own a hundred others. That’s why the Club has a formula for calculating how much money you should allocate to various asset classes for maximum gain at minimum risk. And the Club advises when to rebalance your portfolio.
Keeping your investment expenses low is the Club’s final investment strategy. Too many investors ignore this, and they make their brokers or their mutual fund managers risk instead of themselves. Or they pay out most of their profits to the government in the form of taxes. The Oxford Club wants you to retain your own wealth.
The Oxford Club’s CEO is Julia Guth, and she’s assembled a team of experts to give members everything they need.