Swan Investment Philosophy
We believe that investment gains are only relevant if large losses are avoided. What is the point of large returns if most of it is lost in the next bear market?
The market’s unpredictability makes market timing and stock picking difficult tasks to accomplish, so we believe reducing downside risk is crucial to creating wealth.
|It is difficult to consistently and successfully execute market-timing strategies||→||Remain invested in the stock market at all times|
|It is difficult to select stocks that will consistently outperform the market||→||Invest in index-based ETFs|
|Pursuing returns in a variety of market conditions is critical to long-term success||→||Seek to generate market-neutral income by buying and selling puts and calls|
|The key to long-term wealth creation is to minimize downside risk||→||Always hedge by buying puts to protect clients during large market downturns|
|It is important to control risk in every phase of a market cycle||→||Follow a rules-based approach to remove emotions from the process|