Ask before you invest

by Marilou Moursund on June 4, 2009

in Asset Allocation,blog,Crossvault Capital,Investment Strategies

Whether you are an individual investor or sitting on a non-profit board and responsible for the organization’s investment program, it is critical to know what you own.

Laura and I have been on numerous non-profit boards and investment committees, and I firmly believe that common sense and the willingness to ask questions is more important to our contribution to a program’s success than our industry expertise.

Many non-profits use consultants to provide another layer of fiduciary oversight, but they often recommend increasingly complicated investment strategies in order to differentiate themselves from their competition.  This discusses some of the pitfalls of group decision making inherent in the committee approach.  If I don’t understand a strategy and its potential downside, I won’t vote to implement it.



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