The three pillars of investment success (2024)

“This is a secure investment that pays out fantastic returns”: promises of this kind should set all your alarm bells ringing. Because there is no such thing as return without risk on the financial markets – and no guaranteed recipes for success. Even the most astute investment experts cannot predict the movements of the stock markets with any certainty. However, countless studies show that long-term investment success is based on three factors: analysis, strategy and discipline.
Analysis means systematically studying the markets and investments worldwide in relation to both risks and return potential.

The investment strategy determines how the assets are allocated in a broadly diversified manner across various asset classes – such as equities and bonds – and markets. It has to be tailored to the individual risk profile and needs of the investor.

Discipline is perhaps the most important factor. Once the investment strategy has been chosen, you should stick to it. Even when the stock markets are experiencing turbulence. In other words, you should regularly review your portfolio and re-balance it to match your strategy.

Get professional help

Most private investors experience difficulty in tackling all these requirements – or even just finding the time to do so. That’s why a ready-made solution can be suitable. UBS Strategy Funds are one such example. Here, the professionals take comprehensive care of all three aspects – analysis, investment strategy and discipline – and ensure that no risks creep into your portfolio that you are not willing to take on.

The three pillars of investment success (2024)

FAQs

The three pillars of investment success? ›

However, countless studies show that long-term investment success is based on three factors: analysis, strategy and discipline. Analysis means systematically studying the markets and investments worldwide in relation to both risks and return potential.

What are the three pillars of investment? ›

Investing can be overwhelming, but with the guidance of three fundamental pillars, you can move forward with confidence. These foundational pillars are Faith in the Future, Patience in the Presence, and Discipline in Your Decisions. Let's dig deeper into each one.

What are the 3 key factors to consider in investment? ›

Key Takeaways

An investment can be characterized by three factors: safety, income, and capital growth. Every investor has to select an appropriate mix of these three factors. One will be preeminent. The appropriate mix for you will change over time as your life circ*mstances and needs change.

What are the three keys to successful investing? ›

3 keys: The foundations of investing
  • Create a tailored investment plan.
  • Invest at the right level of risk.
  • Manage your plan.

What are the three pillars of finance? ›

The three core pillars of finance management are Capital Management, Month-end Reporting, and Cost Management.

What is the 3 investment strategy? ›

A three-fund portfolio is a portfolio which uses only basic asset classes — usually a domestic stock "total market" index fund, an international stock "total market" index fund and a bond "total market" index fund.

What are the 3 A's of investing? ›

Remember the 3 A's for retirement saving: amount, account, and asset mix.

What are the 3 main investment categories? ›

There are three main types of investments:
  • Stocks.
  • Bonds.
  • Cash equivalent.

What are the three components of investment? ›

But there are also several components to an investment. Specifically, time, capital, and profitability. Time is the period that you should expect to hold an investment. You might have heard this referred to as the time horizon.

What are the three basic rules of investing? ›

The 3 simple rules of investing that every investor, new or experienced, needs to know
  • Rule #1: Don't lose money.
  • Rule #2: Don't forget rule #1.
  • Rule #3: Make money.
Mar 29, 2022

What are the 3s of investing? ›

No matter what the commercials say, there are only three basic categories of investment: ownership, lending, and cash equivalents.

What are the three keys to financial success? ›

Three keys to financial success are: Always spend less than you earn. Avoid splurging. Invest the rest.

What are 3 things every investor should know? ›

Three Things Every Investor Should Know
  • There's No Such Thing as Average.
  • Volatility Is the Toll We Pay to Invest.
  • All About Time in the Market.
Nov 17, 2023

What is the 3 pillars system? ›

The first pillar serves to secure subsistence and is the responsibility of the state. The second pillar comprises occupational benefits and is the responsibility of employers. With the third pillar, personal responsibility is called for.

What are the three pillars of responsible investment? ›

Read on to learn about the three pillars of a corporate sustainability strategy: the environmental pillar, the social responsibility pillar, and the economic pillar. They are referred to as pillars because, together, they support sustainable goals.

What are the three C's of finance? ›

Character, capital (or collateral), and capacity make up the three C's of credit. Credit history, sufficient finances for repayment, and collateral are all factors in establishing credit. A person's character is based on their ability to pay their bills on time, which includes their past payments.

What are the 3 investment theories? ›

Accelerator Theory Of Investment, Internal Funds Theory Of Investment, and Neoclassical Theory Of Investment are three major types of investment theories. These theories can be used by representative parties to establish their views on the nature of the financial markets and make decisions to reach their broad goals.

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