A portfolio from the past

Yesterday I went through the portfolios of my former clients. These are investment portfolios, most of which were conservative with limited exposure to risk assets.

These are relatively established customers. Not millions, but not those hungry for bread.

Over the years, I have noticed that this segment of customers is more concerned about their money than those who tend to take high risks or those with much larger assets. In fact, it is about the middle of the lower end of the investment portfolio.

And since this is a sector with higher fears, then every small loss in the investment portfolio raises concern and the need to examine whether the investment portfolio is being managed properly.

When the fears are high it is not easy to explain to the customer why his portfolio of profits is small or, heaven forbid, at a certain loss. In most cases it does not interest him that the market is negative. The customer wants profits. And a lot. And now.

So yes, there are some customers who on the basis of a momentary loss in the investment portfolio decided that I was not good enough for them and therefore decided to terminate the contract with me and I stopped advising them on their investment portfolio.

So I went back to check ..

I went back to check what would happen if they stayed with me and were able to hold their portfolio at the time. I returned to 2012. A year that was not simple and especially the one before it.

I opened investment portfolios that were then stopped and examined what would have happened had they not remained “working” to this day. The results amazed even me.

When a client receives updates from me every month, maybe two months, and an annual summary – once a year – it is difficult to see the progress over the years. Every year we scrap a few percent and we move on.

I have not opened the closed investment portfolios for five years. When I opened I discovered phenomenal gains. Profits that are of course only on paper. Again, we are talking about solid customers rather than risk-averse investors. In five years, these investment portfolios recorded impressive returns, with most of the yield being attributed to a falling interest rate, which pushed down the yield on bonds with a steep average duration.

Each of my clients receives personal service and personal and close attention. Both he and his portfolio. Even if the investment portfolio is small and if large.

So I have to admit that I wonder what my former customers will say after seeing what and how their portfolio would behave if they did not behave otherwise and choose to continue working with me. What will they say about their investment portfolio with the addition of high profit rates and a lot of shekels of profits.

They probably never knew