Why Invest Like an Institution?

The list of the largest institutional investors in the world includes private endowment and foundation asset managers such as Harvard University, Kaiser Foundation, Yale University, and others. The list also includes insurance companies, banks, and even some of the big asset managers who sell you managed funds, but don't invest in them for their own returns. These private endowments and publicly traded institutional investors hold some 80% of the market value of the US broad-market Russell 3000 index, and 80% of the US large cap S&P 500 index. They also own close to 60% of the market value in the S&P Euro index. Institutional investors currently own about 75% of the total value of the 10 largest companies in the US. These investors constitute the richest and most profitable class of investors in the world. They are simply who all serious investors want to be...and they own individual equities, not mutual and bond funds.

Institutional investors have earned their elite status for specific reasons. What makes them so successful? What are the investing practices that set them apart from an average investor managing their own, or that of a local broker handling a client's money?

The answers to the question are simpler than you might think and, with the right Money Manager on your side, easier to put into action than you might expect.

Long-Term Positions

For institutional investors, there is no option other than a well defined, long-term view of money and investments. While the average investor often lacks the discipline to operate within a clearly defined holding period, institutional investors purchase shares solely with the intent to hold them long term.

Extensive, and Expensive, Research

Institutional investors make a buy only after very extensive research, sometimes requiring years to complete, has been executed on the target. Average investors, and even many local brokers, simply lack the money, acumen, tools, and time, to properly assess a company's long term value.

I have been with the same advisor for years, and was felt I was doing OK. Lifetime Income Store Advisors has shown me the days of just OK are over." L.B., Cleveland, Ohio

Institutional Investors Benefit From the Trends They Set

When institutional investors buy a stock, they initiate long-term trends. Individual investors, following those trends, tend to lift the share price today and soon drag the same stock down by selling. Institutional investors make money from average investors being late to the party, and from the volatility they generate getting in, and getting out, of a particular equity position.

True Diversification is a Vital Component

What large institutional investors understand better than all other money managers is the real value of true diversification. When you go down to the corner broker, or "Big Box" money manager, they typically put your money in a corporate pre-approved basket of stocks, mutual funds, and fixed income pieces in which they often have a monetary interest to recommend, and which may not best fit your needs. The pre-packaged ratio could be the standard 60/40...75/25...or even 50/50. Many of these strategies lost 38%, or more, in 2008, and not necessarily because of the ratio, but because they were built with poorly diversified and/or correlated equities.

Avoiding 100% of a Market Loss is a Gain

What institutional investors have figured out over the years is...it is as important to outperform the market corrections as it is to capture great earnings in the up markets. The key to beating the downturns is liquidity and...the key to liquidity is proper diversification. Always remember...beating a down market is a gain that can exponentially grow your wealth.

For 83 years, our Money Managers have directed custom multi-asset class portfolios in an institutional style, and have a track record of results that is second to none. Lifetime Income Store Advisors is bringing you a direct, independent, long-term, institutional style of investing that is free of hidden and extraneous fees. This is an opportunity for you to join the same investing class as the largest, most successful, and wealthiest, investors in the world. You owe it to yourself to learn more, and not miss what could be the greatest long-term solution for your investing, retirement, and legacy objectives.

The LISA Global Equity beat it's MSCI ACWI benchmark, the S&P 500, The Dow, and Lipper's Top 100 Mutual Funds, in 2018-2019 with superior upside capture, and limited downside losses. Results are gross of fees.

You owe it to yourself to learn how a well researched, custom crafted, and expertly managed, institutional-style portfolio with true equity diversification could help you achieve all of your investing objectives.

 

Learn more about our Multiple Asset Class diversification methodolgy.