The Investment Mosaic

Let them be loud! After all, they are young only once. That's what I always tell myself when my nerves are on edge. And besides, kids learn by playing. Although, that’s not quite right! Children learn by being annoying. If they are not annoying, they haven't tested our patience and their own limits enough. 

We, as investors, also don't learn the easy way. During bull markets, when everything steadily rises and every decision we make fells like a stroke of genius. Then, at the latest, we should differentiate two things and identify the real reason for the positive results: the bull market or our brains. 

What is really annoying? A protracted bear market where prices of securities continually fall. And fall. And fall. The period stretches out like a chewing gum from our mouths to the farthest fingertips of the outstretched hand. Keep on stretching! Until the web of confidence in our own abilities slowly unravels. 

Experienced investors weave this web of confidence throughout their lives. The more often it is tested and consequently strengthened through bear markets, the greater the conviction that after every dark night the sun will rise again. Recent stock market history has strained investors' nerves. However, last year's gloomy forecasts are slowly receding into the shadows of oblivion and new bright prospects are following due to the positive developments in 2023. Rising stock market prices confirm those who have already invested and put pressure on those who have been waiting. And so, the bull feeds the bull market and prices continue to rise. 

Patience is in our DNA

If the last 18 months shown one thing, it was the unpredictability of the future. That's why we in the Chief Investment Office focus on what we can assess today. We track individual business models, adjust our positions, evaluate new bond issues, and underwrite where we see attractive returns. 

Day by day and week by week, we work on the investment mosaic. New stones are added, some are replaced, and many are polished. Here and there we long for new, exciting colors that are not yet represented. Mostly, however, the price is too high. So, we wait patiently for an opportunity whenever it presents itself. 

Patience is something that children must learn over many years. The same applies to investors with little experience. In contrast, Bank Gutmann, as a 100-year-old financial institution, has an advantage. The constant renewal of our company changes many things, but not our patience. Because patience is part of our DNA. At Bank Gutmann, tradition and modernity are not a contradiction, but a valuable coexistence.