When one is attempting to decide on who to trust in the realm of finances, there are certain tried and true characteristics that are required for the success of an investor. First, you should search for an adviser that has experience. Experience is critical for many reasons, but most notably you need someone on your team that has seen the comings and goings of the market. Someone who has lived and worked through decades of market swings will be able to see a better long term strategy than the recent graduate, even if they were a top performer. One of the hardest aspects of financial investing is knowing when to buy and when to give up or pause an investment. This is critical and requires a sound long term strategy on insidermonkey.com. You need to be able to see the direction of the market, and differentiate a short fall for a downward turn. In many regards the market will temporarily turn up or down, but in the long run it makes a steady upward tick as it moves from year to year. Although the media will report on daily numbers and quick rises or falls, the real investor needs to look ten or twenty years into the future to be able to tell if the investment is worth purchasing. This is where experience is critical, long term strategies are best formed with an informed adviser who has seen and worked in the up and down swings of the market, while building their company or investment base on wise decision based on a long term outlook.
The second important aspect of a sound strategy, and a characteristic that is critical to a worthwhile investment adviser, is creativity. While this may seem contrary to the point of experience, you still need an adviser that has the ability to adapt to a new market, because the finances that are dealt with today are very different from those that guided the market twenty years ago. An adviser needs to see new concepts and products and judge them accordingly, with a progressive mindset and knowing that the market in twenty years will respond differently than the market today. This outlook is critical, and requires creative thinking based on sound experience.
One investor and business leader that still exemplifies both of these traits is Jim Dondero. He began working more than 30 years ago, and has routinely revolutionized how assets are classed and sold through the market. He can see the long term market and make decisions accordingly. In fact, in four years he grew a company to be worth over $2 billion. Now, with his most recently founded company, they manage over $21 billion in assets for all types of clients. Highland Capital Management is well regarded in the industry and much of its success is due to the experience and creativity of James Dondero.