Investment Strategy
An investment strategy is a systematic plan, approach, or methodology designed to guide investors on how to allocate their financial resources to achieve their investment goals. Your ultimate game plan, developing the right investment strategy involves understanding your current and future needs. A good strategy helps you stay focused through ups and downs and gives you discipline when emotions run high. Your investment strategy depends on your personal circumstances, including your age, capital, risk tolerance, and goals. Investment strategies range from conservative to highly aggressive, and include value and growth investing.
Experts
Aaron Brown
Aaron Hodari
Adam Epstein
Adam Goldstein
Ajay Kapur
Alan Zafran
Alejandro Reyes
Alex Bryan
Alex Shevelev
Alex Thorn
Ali Hassan
Allison Schrager
Amanda Agati
Amanda Pullinger
Amanda Tepper
Amolo Ngweno
Anand Sanwal
Andrew Beer
Andrew Cahill
Andrew Saunders
Andrew Schneider
Andrew Schultz
Andy Berg
Andy Constan
Andy Redleaf
Angelo Manioudakis
Angelo Robles
Aniket Ullal
Anirban Mahanti
Antoni Martín
Arjun Divecha
Arnold Van Den Berg
Arthur Laffer
Ash Chopra
Audra Plageman
Barbara Friedberg
Barry Glassman
Ben Floyd
Ben Hunt
Benjamin Halliburton
Berk Ozdogan
Bill Corbellini
Bill Gross
Bill Hortz
Bill Kaye
Bill King
Bill Poulos
Bill Smead
Blair DuQuesnay
Bob Collins
Bob Johnson
Bob Kramich
Bob Lang
Bob Stone
Bob Waldele
Brad Sherman
Brad Thomas
Brenda Vingiello
Brendan Ahern
Brendan Blumer
Brent Kochuba
Brian Dixon
Brian Levitt
Brian Mahoney
Brian Nelson
Brian Pallas
Brian Portnoy
Bruce Burrows
Bruce Fenton
Bruce Greenwald
Bruce Munster
Bryan Campbell
Buck Wiley III
Callum Thomas
Cameron Hight
Carlos Sava
Cathie Wood
Cenk Sidar
Charles Brandes
Charles Day
Charles Mizrahi
Charles Noble III
Charles Sherry
Chen Zhao
Chiente Hsu
Chris Bailey
Chris Browne
Chris Cady
Chris Castroviejo
Chris Cook
Chris DeMuth Jr
Chris Gimbert
Chris Johnson
Chris Knowlton
Chris Pavese
Chris Tyrer
Chris Versace
Chris Wood
Christian Madsbjerg
Christian Thwaites
Christian Ulbrich
Christine Breck
Chuck Bean
Chuck Carnevale
Chuck Royce
Clarke Lemons
Coleman Andrews
Corey Hoffstein
Courtney Smith
Craig Pfeiffer
Cullen Thompson
Curtis Eustis
Cyril Castelli
Dale Pinkert
Dan Bortolotti
Dan O'Connell
Dan Schwartz
Dana Locniskar
Dana Stewardson
Daniel Fries
Daniel Martins
Daniel Strachman
Danny Donado
Darrell Pennington
Darren Harp
Dave Donnelly
Dave Mazza
Dave Samra
David Adelman
David Bahnsen
David Brief
David Collins
David Dorr
David Hay
David Kudla
David Magrone
David Martin
David Merkel
David Modiano
David Nage
David Perkins
David Rosenberg
David Shimko
David Steinbach
David Trainer
Dean Braun
Deepak Shenoy
Dennis Chen
Diana Choyleva
Diana Joseph
Dick Dickson
Dominique Dwor-Frécaut
Don d'Adesky
Doug Foreman
Doug Kinsey
Drianne Benner
Dwight Emanuelson
Ed Chin
Ed Harrington
Ed Woodford
Edouard Robbes
Edward Altman
Edward Chancellor
Ehren Stanhope
Eli Rauch
Ellen Alemany
Elliott Kugel
Emily Rubin
Eric Boroian
Eric Fry
Eric Gray
Eric Jackson
Eric Malchow
Erik Beck
Erik Norland
Euan Sinclair
Evan Roth
Evan Steinberg
Florian Bartunek
Fotios Piniros
Francis Gannon
Francis Scotland
Frank Burke
Frank Holding Jr.
Frank Parker
Frank Seminara
Friedrich Bieselt
Galen Burghardt
Gary Anderson
Gary Antonacci
Gary Norcross
Gary Shilling
Gaston Kroub
Gavin McMaster
Gavin von Loeser
Genevieve Roch-Decter
George Silva
Gerald Jensen
Gerald Loeb
Gillian Yu
Giovanni Pozzi
Glen Strauss
Glenn Degenaars
Gordon Pape
Graham Summers
Grant Williams
Greg Franks
Greg Jensen
Greg King
Greg Onken
Greg Smith
Hank Boughner
Hank McLarty
Hans Humes
Hari Krishnan
Harold Trischman
Harvey Hudes
Hector Fernandez
Howard Schilit
Howard Wang
Hrish Lotlikar
Ian King
Ira Kravitz
Ivan Soto-Wright
J Mintzmyer
JG Savoldi
Jack Bogle
Jack Forehand
Jack Inglis
Jack Schwager
Jacob Shapiro
Jacqueline Willens
James Butterfill
James Lange
James Medeiros
James Stack
Jamil Baz
Jan van Eck
Janet Brown
Jared Card
Jared Dillian
Jason Dworak
Jason Hsu
Jason Moser
Jay Rosenzweig
Jeff Colin
Jeff Erdmann
Jeff Fischer
Jeff Fratarcangeli
Jeff Gitterman
Jeff Grinspoon
Jeff Leventhal
Jeff Megar
Jeff Price
Jeff Rose
Jeff Schulze
Jeff Zirlin
Jeffrey Kleintop
Jeffrey Mettel
Jeffrey Werdesheim
Jens Nordvig
Jeremy Grantham
Jeremy Schwartz
Jerry Parker
Jim Blankenship
Jim Chanos
Jim McLaughlin
Jim O'Shaughnessy
Jim Puplava
Jim Rogers
Joe Jacques
Joe Karas
Joe Martina
Joe Montgomery
Joe Zhao
Joel Greenblatt
Joel Litman
John Barrett
John Bonnanzio
John Bowman
John Embry
John Exley
John Gottfurcht
John Heins
John Kosar
John Olson
John Polis
John Reese
John Shadden
John Stephenson
John Wu
Jon Eilbeck
Jon Markman
Jon Najarian
Jonas Elmerraji
Jonathan Beukelman
Jonathan DeYoe
Jonathan Satovsky
Jonathan Treussard
Jordan Waxman
Josh Crumb
Josh Dorkin
Josh Ho
Josh Levine
Josh Targoff
Josh Young
Judith McGee
Judy Ganes-Chase
Julien Bittel
Juliet Scott-Croxford
Juliette Menga
Jussi Askola
Justin Carbonneau
Jérôme Stern
Karen Harris
Kathy Jones
Keith Dicker
Keith Grossman
Keith Mericka
Keith Weiner
Kelley Wright
Kent Pearce
Kerr Neilson
Kevin Cott
Kewsong Lee
Kia Mosayeri
Kiril Sokoloff
Komal Sri-Kumar
Kris Tuttle
Laila Pence
Lance Roberts
Larry Siegel
Larry Swedroe
Lee Freeman-Shor
Leigh Cohen
Leigh Drogen
Leland Miller
Leo Kolivakis
Lewis Johnson
Lex Sokolin
Lily Francus
Liz Ann Sonders
Liz Young
Louis Navellier
Luca Mossini
Luke Ellis
Lyle LaMothe
Lyle Wolberg
Lyn Alden
Mal Makin
Marc Chaikin
Marc Lasry
Marc Schechter
Marcello Mari
Marco Salerno
Margaret Starner
Margret Trilli
Marissa Kim
Mark Cortazzo
Mark Fendrick
Mark Gehlbach
Mark Moore
Mark Ritchie II
Mark Sebastian
Mark Thorndyke
Marko Papic
Markus Heitkoetter
Martin Fleming
Martin Green
Mary Buffett
Mary Deatherage
Mash Patel
Matt Bohlsen
Matt McCall
Matt Milner
Matt Patsky
Matt Peron
Matt Rowe
Matthias Knab
Max Galka
Max Peckler
Meb Faber
Meghan Shue
Melissa Corrado-Harrison
Meltem Demirors
Michael Covel
Michael Gayed
Michael Kramer
Michael Mauboussin
Michael Nicoletos
Michael Rubenstein
Michael Schneider
Michael Venuto
Michael Weisz
Michael Zeuner
Mick McLaughlin
Mike Abrams
Mike Alfred
Mike Carr
Mike Castiglione
Mike Green
Mike Kantrowitz
Mike Kessler
Mike Larson
Mike Sanders
Miles Clyne
Mish Shedlock
Mitch Stein
Mohamed El-Erian
Morgen Rochard
Moss Crosby
Nancy Davis
Nathan Batchelor
Neal Berger
Neal Frankle
Neil Dutta
Nelly Nyambi
Nelson Chu
Nico Cordeiro
Niels Jensen
Nithin Kamath
Noel Weil
Noreen Beaman
Omar Aguilar
Pamela Rosenau
Pat Dorsey
Patrick Gregory
Patrick Hurley
Patrick McVeigh
Patrick Watson
Patti Brennan
Paul Isaac
Paul Lisiak
Paul Pagnato
Paul Ried
Paul Zemsky
Pavel Bains
Perianne Boring
Peter Atwater
Peter Berezin
Peter Bermont
Peter Brandt
Peter Lazaroff
Peter Rohr
Phil Hartl
Philip Fischer
Philip Kessler
Phillip Toews
Pietro Ventani
Pippa Malmgren
Prateek Mehrotra
Preston McSwain
Raj Bhatia
Raj Sharma
Ram Ahluwalia
Randi Zuckerberg
Randy Carver
Randy Garcia
Ravi Malik
Ray Merriman
Ray Nolte
Ray Uy
Rayne Steinberg
Rebecca Corbin
Rich Booth
Rich Saperstein
Richard Bernstein
Richard Bernstein
Richard Bloxam
Richard Couch
Richard Hamm
Richard Kim
Richard Lieberman
Richard Sandor
Rick Murray
Rick Rieder
Rida Morwa
Rip Hale
Rishi Narang
Rita Lee
Rob Davis
Rob Frasca
Rob Kapito
Rob Riedl
Rob Siracusano
Robert Hagstrom
Robert Johnson
Robin Fink
Rocco Pellegrinelli
Rod Westmoreland
Rodrigo Gordillo
Rodrigo Vicuna
Roger Wacker
Ron Rowland
Ron Stenger
Ron William
Rory Eakin
Rory Hills
Ross Gerber
Ross Laser
Ruchir Sharma
Rudy Martin
Russ Brownback
Russel Kinnel
Russell Wild
Ryan Allis
Ryan Caldbeck
Safi Bahcall
Sahil Bloom
Saker Nusseibeh
Sam Burns
Sam Subramanian
Sam Volkering
Samuel Rines
Sanford Leeds
Sanjoy Ghosh
Santiago Ulloa
Scott MacKillop
Scott Wood
Sean Fieler
Sean Yu
Sebastien Page
Shaan Puri
Shane Brisbin
Shane Oliver
Shannon Saccocia
Sharon Marcil
Sharon Oberlander
Shawn Rubin
Shirl Penney
Siddhartha Jha
Simon Dixon
Simon White
Sonny Kothari
Stanley Kogelman
Stephanie Link
Stephen Dowd
Stephen Hixon
Stephen Lee
Stephen Paras
Stephen Perry
Stephen Weiss
Steve Auth
Steve Foerster
Steve Goulden
Steve Hollomon
Steve Weinberger
Steven Bleiberg
Steven Schoenfeld
Steven Van Metre
Sunil Singhania
Tadas Viskanta
Taimur Baig
Tariq Dennison
Ted Bauman
Ted Jenkin
Teeka Tiwari
Terry Cook
Thomas Hutson-Wiley
Thomas Riegert
Thomas Smith
Tim Beyers
Tim Biggs
Tim Pagliara
Tobias Carlisle
Todd Battaglia
Todd Salamone
Todd Silaika
Todd Tresidder
Tom Frame
Tom Jacobs
Tom Moran
Tom Vacheron
Tony Mackenzie
Tony Sagami
Tristan Lewis
Troy Gayeski
Troy Thornton
Ty Popplewell
Urban Carmel
Valerie Houts
Vance Spencer
Victor Dergunov
Victor Livingstone
Vince DiLullo
Vincent Catalano
Warren Mosler
Will Braman
Will Rhind
Woody Brock
Xavier Rolet
Yoshi Nakamura
Yu-kai Chou
Zach Scheidt
Zack Miller
TYPES OF INVESTMENT STRATEGIES
Growth investing focuses on stocks that are expected to increase in value faster than the broader market. This strategy is usually adopted by investors who want to aggressively build wealth or expand the value of their portfolios by assuming additional risks.
Value investors aim to invest in stocks that are trading below their intrinsic values. They follow a contrarian approach, investing in out-of-favor companies with attractive valuations compared to underlying fundamentals.
Income investors build portfolios to generate a steady stream of cash that they can use to supplement or fully cover their living expenses. Income strategies are typically suitable for retirees and conservative investors focused on capital preservation.
Momentum investors buy securities that have outperformed the overall market over the last 3 to 12 months and sell those that have underperformed, assuming that past trends will continue.
Indexing aims to match the performance of a market index like the S&P 500 rather than trying to “beat” the market. Index investing carries significantly lower risks than growth or value investing as indexes tend to be highly diversified.
Tactical Asset Allocation.
Tactical asset allocation dynamically adjusts a portfolio’s asset class mix to take advantage of changing risk-return profiles and market opportunities. It follows a more active approach than traditional strategic asset allocation based on long-term targets.
CREATING AN INVESTMENT STRATEGY
Assess Your Investment Goals.
Clearly define the strategy’s financial objectives and estimate the returns you expect to achieve.
Determine Your Risk Tolerance.
Define your willingness and ability to tolerate a decline in the portfolio’s value and periods of high volatility. All investing involves risk.
Choose the Target Asset Allocation.
Asset allocation means assigning percentages to each portfolio component including stocks, bonds, cash, and other securities.
Select the Securities that Will Make Up the Portfolio.
Research specific securities across the asset classes that will be incorporated to populate the portfolio.
Execute the Strategy.
Fund the investment accounts and decide how the securities that will be added to the portfolio will be purchased.
Monitor and Rebalance.
Revisit the portfolio periodically to rebalance allocations to stay aligned with the original targets. This involves selling overweight assets to buy underweight ones.