Stock Exchange Advantage | Finance and Investment

Stock market advantage thus drawing a parallel between these two seemingly distant universes. “If you want to be successful, you must constantly learn and improve. We can’t stand still, or we risk getting angry. This is true for tennis, but also for investors who should be looking. We can’t just get our CFA designation and think we know it all. Therefore, we must find ways to evolve. In addition to reading “His?”, he read at least 65 books on finance and investing last year, as well as novels and works on psychology, sports or economics.

Valuable balance

Similarly, to reach their full potential, tennis players need to work not only physically, but also tactically and mentally. The same applies to investors whose performance is based on fundamental analysis, but also on strategy and psychology. Three concepts that the author considers in his book. “It’s a bit like an equilateral triangle where all the segments have to be as strong as each other,” he explains. Without one side, we cannot succeed. »

The author also explores several psychological biases that can hinder investors’ judgment. Philippe Le Blanc gives an example of the physicist’s bias in his interview. “Sometimes we get the impression that if we do very complex, very precise calculations, if we get a result with five decimal places, then we are working with a better model. This is often a trick and leads to mistakes. »

A matter of philosophy

In short, while this book is aimed at investors of all levels, seasoned professionals will also find it useful, he believes, among other things, allowing them to reflect on the philosophy behind their investment strategy. Philippe Le Blanc also details the COTE 100-dominant firm founded in 1988 by his father, Guy Le Blanc, which he joined in 1992. “We have chosen a more defensive approach. So when stocks go up a lot, like in 2021, we generally do a little worse than the indexes. When they are in sharp decline, our returns are generally better than the market. »

There is no question of changing the course due to the movement of the stock market: in terms of strategy, the chief investment officer is more in favor of stability. “It’s important to find a strategy that fits our personality and not change with the seasons. To be successful, you must be consistent in your method. A bit like Novak Djokovic: he always plays the same way, making small adjustments along the way. But that’s what makes it successful. Staying the course can also pay off, he says. He cites the example of his firm investing in Alimentation Couche-Tard stock for its COTE 100 Financial Letter portfolio in 2002. The share price is multiplied by 58,” he explains.

COTE 100, one of Canada’s largest independent private portfolio management companies, performed well last year despite the ups and downs of the stock market. While stock indexes (including dividends) fell 5.8% for the TSX and 18.1% for the S&P 500, the return on the firm’s portfolios fell just 3% or 4%, the Chief Investment Officer says. Moreover, despite the fact that 2022 will be a more difficult year for the stock markets, “We have been growing for 15 years. In 2011, we managed about 200 million assets, but today this number has reached 2.5 billion. »

Mission: financial literacy

Stock market advantage Not the first work signed by Philippe Le Blanc Money or your life A. with his father in 1995 best seller It states that it has sold more than 25,000 copies. The expert has also written more than 450 blog articles for the magazine Deals, which has been publishing the COTE 100 Financial Letter since 2000, is a publication aimed at independent investors. Many gestures that are part of the continuity of the firm’s actions to increase the financial literacy of Quebec investors, he explains. “We have always wanted to share our knowledge, this is our desire. »

“I am sure of one thing, the stock market can be very profitable in the long run. An investor who accepts the basic rules should be able to enrich himself enough.” Educating Quebecers to better understand how stock investments work is therefore not only good for improving their financial security, but also good for the economy. In short, it’s a win for the whole community, he thinks.

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