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Michael Hutton

How to sleep easy with your investment decisions

If your portfolio is inconsistent with your risk tolerance, you’re more likely to lose sleep and make poor decisions driven by emotions.

Michael HuttonContributor

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A core tenet of successful wealth generation is to have a long-term outlook and stick to your guns with investment portfolios. A good quality, well-considered investment portfolio will do well if given the time to do so with (hopefully) minor tweaks along the way to keep things current.
Unfortunately, human behaviour can play havoc with this.

Many investors try to pick the bottom of the market to buy in, or high points to sell, and this involves making investment decisions based on short-term market movements. In contrast, a buy-and-hold approach involves buying investments and holding them over the long term, irrespective of movements in investment markets.

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Michael Hutton is wealth management partner at HLB Mann Judd Sydney.

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    Original URL: https://www.afr.com/wealth/personal-finance/how-to-maximise-your-long-term-returns-20240424-p5fmbl