Both Cloud Financial Planning Pty Ltd ABN 32 206 837 858 & Shaun Liddicoat are Authorised Representatives of AVALONfs Pty Ltd AFSL 437518

Investment Approach

With all investment options we will first seek an understanding of how much money you wish to invest in shares and property (growth assets) along with fixed interest investments (defensive investments). At Cloud Financial Planning we believe you should invest growth assets according to one of two different investment techniques:

Option 1: Invest in everything

Option 2: Invest in a concentrated investment portfolio

  • This investment technique prefers ultimate diversification and will invest you in every company across the world.

  • This technique will invest in a small portfolio of direct investments such as direct shares.
  • We stick to well-known companies with businesses that are easily understood.
  • We only invest in businesses which will not go through much change and are predictable.
  • We only invest in companies with a competitive advantage.
  • This technique will be more volatile than Option 1 as risk is concentrated to a smaller number of investments. You should not enter this investment option if your tolerance for volatility is low.

Acquire assets at or below fair value: The price at which you enter into an investment will have a significant impact on the final return you receive. We believe you should not enter into investments purely for the purpose of investing. Rather, we believe in being patient and only paying a fair price for an investment.

Structure assets cost effectively: Once assets are selected with the right characteristics then acquisition is sought in the most cost effective manner possible. This ensures your portfolio is not eroded away by fees and charges.

Rely on the benefits of compound interest: Compound interest is earning interest on top of interest. We believe in a long term investment approach to take full advantage of compound interest.

Regularly review your investments and new opportunities: As part of our ongoing service we regularly review your investment portfolio. Research and market assessments are conducted daily. In promoting our ongoing service we believe in a proactive approach. Should we feel a change in your investment portfolio is warranted then we are in close contact with you to arrange an investment review.

Why?
Cloud Financial Planning