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. These private institutions and 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.

Institutional investors control a significant share of global stocks, and have earned their status for a reason. What makes them so successful? What is the difference between one of these behemoth's investing strategy, and that of an average investor managing their own, or that of a local broker handling their money?

The answers to the question are simpler than you might think, and easier to put into action than you might expect.

Click here for a message from Jeffrey Hale explaining a key value of Institutional Investing with a sophisticated Multiple Asset Class approach.

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.

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 the average investors being late to the party, and from the volatility they generate.

Diversification is the Final Piece

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 stocks, or a mutual fund, and a couple of fixed income pieces. These are investments they have some history with, or a connection to, at some level. The ratio could be your standard 60/40...75/25...or even 50/50. Many of those strategies lost 38% in 2008, and not necessarily because of the ratio, but because they were not properly diversified. The diversification vehicles matter as much as diversification itself.

What institutional investors have figured out over the years is...it is as important to outperform the market corrections as it is to generate earnings in the up markets. The key to beating the dips is liquidity and...the key to liquidity is proper diversification.

For 83 years, our Money Managers have directed portfolios in a customized 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 a great long-term solution for your investing and retirement needs.

Call us today, and let's discuss what a sophisticated, well researched and managed, institutional-style portfolio with true diversification could do for you.