If you are a steward of your family’s wealth for generations to come, your asset allocation strategy has to be different than if you are the owner of your wealth.
Whereas an owner often (not always) is keen on immediate (quarterly) returns, a steward will look further out to the horizon and will be motivated by investments that may only yield a decade or two from the time of investment. This is obviously dependent on the size and nature of the wealth. If reasonably diversified, the family will not be dependent on these sources for short-term liquidity and will thus enjoy the fruits a long-term investment potential.
The time horizon is the corner stone of any family project. Long-term investment can and should be strategic and convergent so that the portfolio will generate something bigger than its simple return at term.
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