Our Core Economic & Investment Principles
An investment decision-making framework that combines time-tested principles, rigorous global research and an in-depth evaluation of risk dynamics.
Principle of Applied Wisdom
- The world is uncertain but not chaotic.
- Reasonable decisions can reduce exposure to high-risk environments.
- Applying wisdom principles may not eliminate risk, but it may improve the chance of successful outcomes.
Principle of Uncertainty
Why We Plan, Save and Invest
- The future is uncertain.
- Provision against uncertainty is a reason to plan, save and invest.
Principle of Human Productivity
How Wealth is Created
- Productivity is the combination of human creativity and natural resources.
- Wealth is created as a result of human productivity.
Principle of Inherent Value
How to Find Opportunities
- Investors and markets are not always rational.
- Eagerness for gain, or fear of loss, can drive investors into bubbles and crashes.
- Opportunities or risks can be identified when a disciplined valuation process is used to determine the inherent value of an investment.
Principle of Leadership & Governance
Where Wealth is Created
- The manner in which leaders govern (governments, corporations, etc.) significantly influences the productivity of the people they lead.
- Environments with greater civil and economic freedom tend to provide more fertile ground for investment due to increased human productivity.
Principle of Instability
How to Manage Risk
- Markets and economies are not stable.
- Due to instability, provisions against uncertainty may fail.
- Risk needs to be managed through diversification and an appropriate allocation of wealth and risk.
*An investor may not invest directly in an index such as VIEQX. In addition, emerging markets investments may expose investors to risks not typically associated with similar investments in more developed markets. The classification of a country as an "emerging market" is generally based on the relative economic, political and social development and is by necessity subjective.