Invest your assets skillfully

You are welcome to manage your own assets. It may take a while to acquire the neces­sary exper­tise. As an award-winning indepen­dent Swiss asset manager, Tareno supports its clients with exper­tise and many years of experi­ence in invest­ment strategy, cost optimization and regular reporting.

Tareno AG – who we are – in a nutshell

Can I invest myself?

Of course, but invest­ment novices should be aware that it makes sense to start with small steps and to acquire knowledge over the years about markets, industries, and strate­gies, invest­ments, and fee traps in order to avoid surprises as much as possible. An indepen­dent wealth advisor like Tareno supports high net worth indivi­duals not only with finan­cial planning, but also with a custo­mized invest­ment strategy and its skillful imple­men­ta­tion.

How do I acquire the neces­sary know-how and avoid unneces­sary risks?

It is essen­tial to develop a general under­stan­ding of economic inter­re­la­ti­on­ships. Macroe­co­no­mics is just as much part of the skill set as basic business knowledge. Being able to read and under­stand balance sheets helps in evalua­ting compa­nies. Daily study of relevant reporting is a good start. Specia­list litera­ture on indivi­dual aspects makes it possible to decipher the mecha­nisms of the market. Investi­gate invest­ment concepts to slowly develop an under­stan­ding of how money can be profi­tably invested over time.

Invest­ment strategy – it starts with self-reflec­tion

To define personal invest­ment goals, it is important to consider your own finan­cial situa­tion. Security, liqui­dity and return on invest­ment behave like a triangle. The willing­ness to take risks influences finan­cial goals and thus provides the frame­work for invest­ments. A sustainable invest­ment strategy is neces­s­a­rily geared towards the long term. It becomes intere­sting when distri­bu­tions from invest­ments, such as capital gains or dividends, can be reinve­sted. Nevert­heless, adjust­ments must be regularly reviewed, as both personal circum­stances and the finan­cial market are constantly changing. The saying “don’t put all your eggs in the same basket” is a good descrip­tion of invest­ment diver­si­fi­ca­tion. In a figura­tive sense, it is advisable to invest in diffe­rent asset classes such as equities, bonds, gold and real estate. Risk can be hedged even more effec­tively by sprea­ding invest­ments across diffe­rent economic sectors and regions.

Stocks – an enticing risk

Before investing in shares themselves, Sybille Wyss, CEO of Tareno, recom­mends that private indivi­duals acquire knowledge about the relati­on­ships between risk and return over time. Shares are suitable for long-term invest­ment strate­gies. The price of a share can vary greatly. It usually recovers from setbacks over time; the risk of a capital loss decreases with incre­a­sing invest­ment duration. The stock market, charac­te­rized by short-term fluctua­tions, should there­fore be viewed from a long-term perspec­tive. Further­more, compa­nies can get into finan­cial diffi­cul­ties and, in the worst case, be liqui­dated. To minimize a possible capital loss, it is essen­tial to be invested in several compa­nies. Compared to bonds, however, equities offer the prospect of higher capital growth over the long term.

Private equity – the counter­part to tradi­tional shares

Private equity involves shares in compa­nies that are not (yet) listed on an exchange. This type of invest­ment is usually made through profes­sional invest­ment compa­nies that specia­lize in private equity as capital provi­ders. In the US alone, 87% of all compa­nies with revenues over $100 million are priva­tely held and there­fore not listed on the stock exchange. This intere­sting market is hardly acces­sible to private indivi­duals when it comes to invest­ments.

Bonds – an invest­ment with a dividend

Private indivi­duals who invest in bonds – also known as deben­tures – lend their money to the issuer of the security and receive interest in return. Compared to shares, bonds are a safer invest­ment. Investors benefit from regular income. The amount of income can be deter­mined from the key figure “yield to maturity”. This describes the total return on a bond held to maturity. It is made up of the interest rate level, the credit­wort­hi­ness of the issuer and the term. However, bonds also entail uncer­tain­ties that investors should be aware of. Rising interest rates reduce the value of an invest­ment. A company can become insol­vent, which can lead to a perma­nent loss of capital. Here, too, the principle applies that “the higher the return (at maturity), the riskier the invest­ment”.

ETFs – funds for every budget

Exchange-traded funds (ETFs) are based on a variety of equities or bonds. ETFs are there­fore parti­cu­larly intere­sting for investors who want to invest a small amount of money in a diver­si­fied way. ETFs can be catego­rized as either “distri­bu­ting” or “reinve­sting”. Those who want to generate a regular income invest their money in “distri­bu­ting” ETFs. As a long-term invest­ment, accumu­la­ting ETFs are better suited because here the yields are automa­ti­cally reinve­sted. Investors benefit from the compoun­ding effect and achieve a higher return. Compared to an indivi­dual invest­ment, ETFs carry less risk due to diver­si­fi­ca­tion. Nevert­heless, it should be noted that highly valued compa­nies and those with high debt levels tend to be overre­pre­sented in the ETFs. This in turn can have a negative impact on returns.

Deriva­tives – a playground for profes­sio­nals

Futures transac­tions, as deriva­tives are also known, carry a high level of risk and are usually complex to handle. Deriva­tives can be used to specu­late on specific market expec­ta­tions. This is to be under­s­tood as a kind of bet on whether the price will rise or fall in the future. Deriva­tives are there­fore useful, for example, to protect shares from a possible price drop. However, markets are often unpre­dic­table and counter­par­ties do not fulfill their obliga­tions in all market phases. Indivi­duals who do not have the neces­sary exper­tise are advised not to enter into forward transac­tions independently. Even with profes­sional invest­ment advice, it is neces­sary to under­stand the key workings of deriva­tives and the risks involved.

A good start is half the battle

Investing is a proven way to achieve long-term finan­cial goals, build wealth and ensure finan­cial security. By investing wisely, investors can benefit from poten­tial returns and interest while protec­ting themselves against infla­tion and finan­cial risks. There are a variety of invest­ment options, each with its own advan­tages and disad­van­tages.
It is always advisable to build up a sound knowledge, to thoroughly inform yourself and to seek advice from profes­sio­nals in order to make informed decis­ions. Experts can take into account indivi­dual needs and goals, conduct a compre­hen­sive analysis and develop custo­mized invest­ment strate­gies that meet the changing personal circum­stances.

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