It was about twenty years ago that I was offered the chance to meet an investment advisor at my local bank. The meeting would be about the new opportunities they could offer, and the best long-term strategy to adopt.
I decided to go along, more out of interest than any likelihood that I was going to pursue any of the options offered, but I wanted to hear what they had to say.
I knew that the bank probably had something that they wanted to sell me. A fund, or maybe a market tracker?
So, I met with one of their advisors.
He was a young man who had the look of a banker. Swept back black hair and wearing what looked like an expensive suit.
Reminded me of the Wolf of Wall Street, except this was Middle England.
I was casually dressed. I don’t think that I looked like a high-wealth individual, but there again, I knew there were many business leaders who dressed smart and casual.
I was not a business leader, though.
We had a conversation, and I was asked what my investment goals were.
To make money, or at the very least, not to lose it? That was too obvious.
In the stock market, there is a chance that you could lose it. You can lose every penny. Companies do go bust. Or you just get unlucky, and the bull market that has been running for several years comes to an end just as you invest.
But it is also possible to do very well. Timing and time can work in your favour.
So, we discussed my investing goals and markets; some were seen as safer than others. There was much talk about averages and long-term gains.
Think long term, I was told.
He showed me a chart of some of the funds that the bank had to offer. They seem to have done well. There were occasional dips, when the market had a hissy fit, but everything, over time, was pointing up.
He was also keen to promote a new fund, called a “special opportunities” fund.
The words long term were used quite a lot.
As the meeting went on, with long term being mentioned for the umpteenth time, I could not help but say that the only certainty about the long term was death.
And the occasional stock market crash and bear market.
That lightened the mood!
But the long-term argument is one that I have heard many times, going back years, especially when it comes to the waiting time on an investment to deliver.
They can deliver if you get it right, but sometimes they don’t.
At the meeting, there was not much discussion with regard to diversifying risk.
But things were fairly bullish at the time. There was a feeling that the good times would never end.
On this occasion, I thanked the advisor for his advice and said that I would think about it.
“Don’t forget that special opportunities fund; the closing date for the IPO (initial public offering) is soon,” he said as I left.
“I won’t forget,” I replied.
I didn’t.
When I checked the performance a year or so later, the fund was down over 20%.
Not so special after all, I thought.
But hey, there is still the long term.
Thanks for reading.
This post was first published on Medium. 05/12/2024.
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