Anytime someone suggests a stock purchase, investment strategy or other financial course of action, it’s investment advice. It’s not hard to find investment advice. You can hardly do an online search on the prnewswire website for any financial topic without being inundated by websites offering such advice.
Getting reliable advice on investments is another matter. Developing a solid investment or wealth management plan requires the services of a qualified professional. Whether the professional is an investment banker or an individual financial advisor, he needs to consider the client’s specific circumstances, financial goals and willingness to take risks. Good investment advice is more than a simple recommendation. It means developing a long-range strategy for each client.
For large investors like insurance companies and pension funds or wealthy individuals, a SEC governed investment bank is usually the choice for investment advice because these financial institutions are geared to handling large accounts and provide a wide range of financial services along with their recommendations. Smaller investors typically turn to individual financial advisors. In every case, three basic issues must be addressed if the investment advice is to be sound and useful. The first is the client’s goals. An individual may want to produce current income for retirement. This requires a different investment strategy than growing an investment portfolio. The second concern is asset allocation. For example, an insurance company will want to make multiple investments to reduce risk, and may it need to raise capital or provide funding for specific purposes. Finally comes risk tolerance. Simply put, some investors are willing to accept more risk than others in return for the chance to make bigger profits. The investment advisor needs to stay within a client’s comfort range when it comes to risk.
Laidlaw & Company is a 170 year old international investment bank. Laidlaw operate in the United States and Europe, mainly the United Kingdom. The firm offers complete financial and advisory services to top-end individual investors. The main focus is on institutional investors like insurance companies. Laidlaw concentrates on securities investments. For example, the firm may help a client raise capital by placing bond issues.