The Be-All And End-All

Ahead of the benchmark. Lagging the benchmark. Our industry is subject to a benchmark obsession. But okay, a benchmark is important because, after all, we want to be able to compare our success - or failure.

I have a little secret to whisper in your ear: I don't even know whether my private portfolio has beaten “the benchmark” in recent years. And what exactly is that supposed to be? A world equity index is often used as a benchmark. Others think a U.S.-index is great. Some even use the German DAX. It probably depends on where you live.

I also measured and recorded from 2008 to 2018. Then I stopped again. Because what’s the point? As a private investor, I want to maximize my asset growth after tax. With a volatility that doesn't cause me to panic. Although volatility is a euphemism. Upward volatility has not yet unsettled anyone. It is only the setback that worries us. When we calculate how much money we have “lost”.

But is it really lost if the company was worth 100 on the stock exchange yesterday and only 90 today? Let’s not lose our minds.

Money must do something

The ultimate goal of our clients is the real preservation of their assets. It has often been created through entrepreneurship and should be preserved for future generations. Also for investments in their own business or for difficult times.

This almost always results in a mix of equities and bonds to cushion setbacks and maintain exposure to the financial markets for longer. Other assets, such as real estate, are usually also part of a client’s mix.

The most important thing is that cash assets do not lie idle but are invested. Beating the savings account is already a great success. Even if this benchmark was zero for 15 years. Wealth must grow if it is not to decrease when adjusted for purchasing power.

At Gutmann, we do everything we can to achieve this growth and avoid permanent capital loss. We focus the Gutmann portfolio management strategy on this goal - time and time again.

Disclaimer: This is a marketing communication. Investments in financial instruments are exposed to market risks. Past performance does not predict future returns. Forecasts are not a reliable indicator of future performance. Tax treatment depends on each client's personal circumstances and may change in the future. Bank Gutmann AG hereby explicitly points out that this document is intended solely for personal use and for information only. Publishing, copying or transfer shall not be permitted without the consent of Bank Gutmann AG. The contents of this document have not been designed to meet the specific requirements of individual investors (desired return, tax situation, risk tolerance, etc.) but are of a general nature and reflect the current knowledge of the persons responsible for compiling the materials at the copy deadline. This document does not constitute an offer to buy or sell or a solicitation of an offer to buy or sell securities. The required data for disclosure in accordance with Section 25 Media Act is available on the following website: https://www.gutmann.at/en/about-gutmann