top of page

Lawton Principals of Investing

Over the years Lawton has developed, tested and proven a number of investing ideas and principals to help control risk and increase return.  

​

Lawton Principals of Investing:

  • Modern markets are the single most powerful tool to help improve the human condition.

  • Focusing on what helps people and the planet can actually increase, not decrease, returns.

  • It is possible to produce stable positive returns in all market conditions.

  • An accurate definition of risk and disciplined approach to risk management is key to producing consistent superior investment returns.

  • Early identification and entry into positively trending inefficient markets produces high returns.

  • Aggressive global asset allocation between countries and asset classes is a key driver to superior returns.

  • Markets are complex discount mechanisms. Focusing on what, how and when markets discount information produces superior investment outcomes. 

  • Different markets discount information differently. Some markets are more efficient at discounting information than others.  It is easier to produce superior risk adjusted returns in less efficient markets.

  • Markets are a function of human nature which should be considered in every investment.

  • Understanding a market's structure, and the motivation and stimuli that cause the market participants to buy or sell in that market can provide an edge.

  • The same type of market may operate differently in different countries based on culture, economic and other factors, making it necessary to adjust process for the country.

  • Markets are organic, and evolve over time, therefore one must have a process that identifies fundamental changes in markets and adjusts asset allocation and strategies accordingly.

  • The investment process should be forward looking based on what we expect to happen, not backward looking based on historical information or models as many strategies are.

  • Economic incentives work (tax policy, tariffs, regulations, supervision).

SIGN UP AND STAY UPDATED!

Thanks for submitting!

 

Disclosures

​

Lawton on Markets (LoM) is a private blog site authored by William Lawton.  The goal of LoM is to help investors better harness the power of financial markets to increase returns and lower risk while making a positive contribution to society. There is no guarantee this goal will be met.  LoM is not part of  Seagate Global Advisors LLC, Seagate Global Wealth Management LLC, Seagate Global Capital Sdn Bhd, or any other member of the Seagate Global Group.  The opinions expressed are those of the author alone.  LoM does not provide investment advice, recommend securities or offer to buy or sell securities.  Any past investment performance cited is presented as supplemental  information only. Important investment performance footnotes are included in the source documents. Past performance is no guarantee of future returns.   

bottom of page