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Against "Defensive" Investing

Many family office investment managers will say they are focused on "protecting" or "conserving" their clients' wealth. This mentality leads to defensive investment strategies (think high fixed income allocations for very wealthy clients with minimal cash flow needs) which results in a slow but real long-term decline in their clients' fortunes in terms of purchasing power.


Most wealthy families become wealthy because somewhere along the line someone in the family took a significant entrepreneurial risk and was highly successful. Why do wealth managers advise these entrepreneurial risk-takers to all of a sudden become hyper-conservative investors?


At Servant Capital Advisors, we believe families with significant wealth have a moral obligation and a great opportunity to invest their discretionary wealth aggressively to maximize the funds available for philanthropic impact through charitable donations. "Much will be required of the person entrusted with much, and still more will be demanded of the person entrusted with more." - Luke 12:48


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