Advocating Slow And Steady Wealth Building Through Thorough Due Diligence

• 1 June 2023
• Jill Nes

In a world that glorifies quick gains and instant gratification, Jill Nes, the CEO of BMF Wealth, stands as a beacon of wisdom, advocating for a slow and steady approach to building wealth.

With a focus on thorough due diligence and investing in a diversified portfolio across various asset classes, Jill urges investors to adopt a “more tortoise and less hare” mentality.

By only recommending investments that the Directors of BMF Wealth themselves own, she emphasises the importance of aligning interests and fostering trust. Let’s explore Jill’s investment philosophy and how it can help safeguard and grow your hard-earned wealth.

The Power of Due Diligence: Jill firmly believes in the power of thorough due diligence. Before recommending any investment to her clients, she and her team at BMF Wealth extensively research and analyse the opportunities. This meticulous process involves assessing the fundamentals, market conditions, management teams, and potential risks associated with each investment. By conducting due diligence, investors can make informed decisions and reduce the likelihood of falling victim to fraudulent schemes or unsustainable ventures.

Embracing the Tortoise Mindset: Jill encourages investors to adopt a “more tortoise and less hare” mindset when it comes to wealth building. Instead of chasing quick gains and high-risk investments, she emphasises the importance of patience, discipline, and long-term planning. By taking a slow and steady approach, investors can avoid impulsive decisions driven by market volatility and short-term trends. This approach fosters stability, consistency, and a greater potential for sustainable wealth accumulation.

Diversification Across Multiple Asset Classes: Another key aspect of Jill’s investment strategy is diversification across multiple asset classes. BMF Wealth advocates for a well-rounded portfolio that includes cash, quality debt, gold, low-leveraged commercial properties, listed equities, private equity, and long-short funds run by experienced managers with a proven track record. This multi-asset approach allows investors to spread their risks and capture potential growth opportunities in different market conditions.

Protecting Wealth for Future Generations: BMF Wealth’s investment philosophy extends beyond the present generation. Jill understands the importance of preserving wealth for future generations. By constructing portfolios that span multiple currencies and custodians, she ensures that her clients’ wealth is shielded from economic uncertainties and geopolitical risks. This comprehensive diversification strategy provides a solid foundation for long-term financial security and the ability to generate both income and shelter.

Aligning Interests: Directors Leading the Way: One notable aspect of Jill Nes’s approach is that BMF Wealth’s Directors & notably Founder & Chairman Barry Mendel, invest in the same investments they recommend to clients. This alignment of interests creates a high level of trust and confidence, as clients know that their wealth advisors have a personal stake in the investments they suggest. This practice underscores BMF Wealth’s commitment to transparency, integrity, and a genuine desire to protect and grow their clients’ wealth.

The team at BMF Wealth are also guided , inspired and in frankly awe of 4 Investing Legends from whom they take & absorb guidance & wisdom , understanding their processes and soaking up their knowledge in formulating how best to serve their clients. Below are some insights into these 4 legends , who inspire & frame BMF’s approach to successful investing.

Investment Insights from Legendary Investors: Howard Marks, Warren Buffett, Stanley Druckenmiller, and Ray Dalio

Introduction: Investing wisely is a key to building and maintaining wealth over time. Many successful investors have left behind valuable insights that can guide aspiring individuals in their pursuit of financial prosperity. In this article, we delve into the investment strategies of renowned investors Howard Marks, Warren Buffett, Stanley Druckenmiller, and Ray Dalio. By understanding their approaches, we can glean important lessons on how to get rich and, more importantly, stay rich.

1. Howard Marks – Mastering the Art of Risk Management: Howard Marks, co-founder of Oaktree Capital Management, emphasises the significance of risk management in investment. Marks believes that a successful investor must have a deep understanding of market cycles and the ability to identify mispriced assets. He advocates for a contrarian approach, buying when others are selling and selling when others are buying. By carefully managing risk and patiently waiting for opportunities, Marks has consistently achieved exceptional returns.

Key Lesson: Prioritise risk management, understand market cycles, and take contrarian positions when warranted.

2. Warren Buffett – The Power of Long-Term Value Investing: Warren Buffett, the chairman and CEO of Berkshire Hathaway, is widely regarded as one of the most successful investors of all time. Buffett follows a value investing approach, seeking undervalued companies with solid fundamentals. He looks for businesses with a sustainable competitive advantage, strong management, and a long-term perspective. Buffett is known for his patience, discipline, and ability to stay focused on the big picture, rather than being swayed by short-term market fluctuations.

Key Lesson: Invest in undervalued companies with strong fundamentals, adopt a long-term perspective, and remain patient and disciplined.

3. Stanley Druckenmiller – Navigating Market Trends with Flexibility: Stanley Druckenmiller, a highly successful hedge fund manager, is known for his ability to navigate market trends and capitalise on opportunities. Druckenmiller believes that successful investing requires being flexible and adapting to changing market conditions. He emphasises the importance of risk management and adjusting portfolio positions based on evolving economic indicators. Druckenmiller’s track record demonstrates his ability to anticipate market movements and generate substantial returns.

Key Lesson: Be flexible and adapt to changing market conditions, prioritise risk management, and use economic indicators as a guide.

4. Ray Dalio – The Art of Diversification and Bridgewater’s Principles: Ray Dalio, the founder of Bridgewater Associates, has achieved remarkable success by employing a systematic approach to investing. Dalio believes in the power of diversification and leveraging the benefits of uncorrelated assets. His investment philosophy is based on understanding economic cycles and employing a risk-parity strategy to balance risk across asset classes. Dalio also emphasises the importance of maintaining a culture of radical transparency and embracing mistakes as learning opportunities.

Key Lesson: Diversify investments across uncorrelated assets, understand economic cycles, and foster a culture of radical transparency.

The investment strategies of Howard Marks, Warren Buffett, Stanley Druckenmiller, and Ray Dalio offer invaluable insights into the world of wealth creation and preservation. To get rich and stay rich, it is crucial to prioritise risk management, adopt a long-term perspective, be flexible in adapting to market trends, diversify investments, and embrace a culture of continuous learning. By incorporating these principles into your investment approach, you can increase your chances of achieving financial prosperity and maintaining wealth over time. Remember, successful investing requires discipline, patience, and a commitment to continuous improvement.

Conclusion: In an era dominated by rapid market fluctuations and get-rich-quick schemes, Jill Nes, the CEO of BMF Wealth, offers a refreshing perspective on wealth building. Her emphasis on thorough due diligence, diversification across multiple asset classes, and a slow and steady approach can provide a solid foundation for financial success. By prioritising long-term planning and aligning interests with clients, Jill and her team at BMF Wealth strive to protect and grow their clients’ hard-earned wealth, providing not just for the present but also for future generations.

Remember, in the race to build wealth, often it’s the tortoise who emerges victorious.