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).

bottom of page