Investment Philosophy
Trade Inc. enables savers and investors to have access to tangible investment strategies that secure THEM a stake in the fortunes of the global economy. We achieve this by practising disciplined portfolio diversification and by buying stocks we consider to have the potential to perform profitably over the long term. Frequently, these stocks do not have a fixed nominal value and prices can at times be volatile, which is why they are generally incompatible with covering short-term liabilities. However, they do generate a strong basis for generating income and are therefore model assets for long-term investment, where the principal risk is inflation.
We believe that a client's future is bound up in hard assets. Of course, there has been a growing interest in investing in emerging economies, but we know that some of the policies being pursued by governments around the world are in direct response to the global economic slowdown. We consider that these policies can pose a major threat to the wealth of our clients and a hedge needs to be provided to guard against the predictable degradation and devaluation of the world's currencies by stealth, supported only by more promises from the governments that launched them.
We don't restrict ourselves to one approach. It would perhaps be more accurate to describe our practice as focusing on value investing, employing traditional measures such as yield, price-to-book ratios and discounted value when deciding on which stocks it would be prudent to acquire. We aim to invest in companies that are expected to increase their dividends because we believe rising income will support their value.
Investment Philosophy
The main focus of Trade Inc. is to only purchase and hold equity in quality corporations of rising potential. These companies would have been identified as those that continually create and preserve long-term wealth and we achieve this by targeting stocks that have either not been noticed by the markets and our competitors or have fallen out of favor for various reasons.This is best realized in instances where we have a discretionary mandate from our clients when acquiring these hard assets on their behalf. It should be acknowledged that while bull markets rarely rise in a perfect upward trajectory, our aim is to secure client holdings on short-lived pullbacks in value as we anticipate a resumption of the uptrend. Our strategy is to avoid the irrational tendency to try to outguess the market as we accept it is the market that determines value, not us.
As seasoned investors, Trade Inc. cannot with any integrity claim to accurately predict movements in the markets and our experience reminds us that long-term investment is the optimum way to level out market fluctuations. We construct bespoke, diversified portfolios that hold equities, bonds and other quality investment vehicles that support a portfolio's historical predisposition to surpass inflation. This approach helps our clients enhance their income over the long term.