This is the first of a series of articles on asset classes. Whether you are an individual managing a portfolio for retirement, or someone who just sold their business and devising a strategy to invest funds, the choice of asset classes will be the most fundamental investment decision you make in designing your portfolio.
In our M&A business, we have come across many business owners who choose not to sell their businesses, because they do not believe they can achieve decent returns. Often they hold onto their businesses longer than age-associate risks would justify. Others might not be that advanced in age, but would prefer sell their business and enjoy life, yet cannot bring themselves to sell their businesses because they do not have confidence in their ability to create a portfolio which generates a decent return. In the past years, there have been numerous articles about how we are in a “low yield” environment. The good news is that it should be possible to create a portfolio that brings a decent return over the long-term.