You see, I believe investing is business. It is not about scientific formulae or statistical maths. Its about understanding business and adopting a business like approach to determining the economic value of the investment and deciding with rational thought on the merits of risking capital to it.

A sound grasp of accounting is useful in order to understand a balance sheet, a love for reading company reports [ouch] a basic economic understanding, but above all, you have to have the psychological make up to be really successful in the stock market. Very much like an entrepreneur.

You have to accept risk and the chance of it occurring. If you are not prepared to accept any variance or risk, then you are better of just leaving your capital in cash. Good luck with that if you think that is the safest option for your hard earned money. The Government will be the first to take a slice through inflation, if not default.

Yellow Capital was established to provide a holistic wealth management offering for wealthy clients. Many providers in the market claim to be wealth managers, however, they are at best bankers selling the banks products, or just financial adviser’s or more typically just investment managers who have no interest in the clients total wealth/financial position. The true definition of wealth management is a combination of financial planning and investment management – you have to have a financial  plan before you build an investment solution. Otherwise you don’t really have a compass to guide you to where you want to go. It is a bit like a company having the CFO decide what is best for the company reserves but no business to plan to guide him over the 3yr or 5yr objectives. Questions he would need to know are: What does the company want to achieve? What should the balance sheet look like? How does it measure its performance against its objectives? The list goes on.

Yellow Capital is credible for the following reasons:

We always prepare a financial plan that includes a cash flow analysis and scenario analysis, i.e. we put the investment pot through simulated economic conditions such as high inflation, low growth or high interest rates.

Once our financial plan is completed, we build the investment portfolio based on the required objectives.

Our service is on an advisory basis, which when compared to a discretionary service has far more credibility to ’the informed client’. Its your capital, we advise you on the advantages and disadvantages of deciding upon one or another strategic paths. Our advice is always impartial, as we are fee based. The trusted adviser status is hard earned and we are proud of it.

We don’t need or want custody of your assets, nor do we want to be in a position to trade ‘willy-nilly’ [which is another word for 'churn'] on your portfolio without your prior agreement and understanding. More often investment managers make more money on holding your investment portfolio on their platform, churning your investments and buying their own products or funds. Not very impartial!

Our investment proposition consists of applying the value strategy of investing. If you don’t look at investing as a business and owning a share in a company as a shareholder then your investment philosophy and success is more likely to be average or below.