Strategic Asset Management

Written by Michael Federico
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There are two basic beliefs when it comes to managing assets. One group of people believes it is important to diversify. It is the old “don’t put all of your eggs in one basket” theory that leads them to this conclusion. If a person invests in several different areas or a variety of types of stock, it is more likely that he won’t lose everything if one industry or company takes a hit. The other group of people takes a more universal approach to investing. They believe that there is greater potential for growth if a person focuses on one area and exploits it for all it is worth.

Both types of investment come with a varying degree of risk. For instance, a person who only wants to invest in the stock market can make very “safe” choices, focusing only on blue chips, or he can gamble a bit and put everything into startup technology stocks. Those who diversify have so many things that can affect their portfolio that it is often difficult to calculate the overall risks involved.

Management Strategies for Any Type of Investor

Different strategies should be applied depending on what type of assets a person holds. However, there are a few things that are important regardless if a person has shares of Coca Cola or if he owns three homes, two businesses, is involved in a Hedge fund, and has a fleet of tankers on the side. A person has to keep track of the performance of his assets constantly. In many cases, he must also buy, trade, and sell assets to continue to make money from his investments.

Asset management consultants can help a person develop a plan that is specific to his needs. They will take into account everything that he holds, what he wants to accomplish with those holdings, and whether or not he has the potential to expand his portfolio. Consultants can be expensive, but they can end up making and saving people a lot of money simply by demonstrating what needs to be done for them to successfully manage their assets.

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