What is an investment philosophy?

An investment philosophy is a set of beliefs and principles that guide your investment decisions. It provides a framework for making consistent and rational choices, even during times of market volatility. Having a well-defined investment philosophy helps you stay focused on your long-term goals and avoid making impulsive decisions based on short-term market movements.

Having a strong conviction in your investment philosophy is essential for maintaining peace of mind. When you have confidence in your approach, you are less likely to be swayed by market noise and more likely to stick to your plan. This conviction allows you to make informed decisions and stay committed to your strategy, even during challenging times.

West Carr & Harvey Financial Planning investment philosophy

At West Carr & Harvey Financial Planning, we emphasise the importance of passive income when formulating an investment strategy. Often, we find clients focus on capital growth and can find themselves in a position of being “asset rich, income poor”.

Being “asset rich, income poor” can be okay while you have adequate income via employment, but if you experience a period of unemployment, or decide to retire, you may find yourself in financial stress.

We are strong believers that it is difficult to time the market and accurately predict the next hot asset. Instead, we can assist you in exploring an investment philosophy and plan that is manageable and suits your personal and financial goals.

Ethical considerations

Many investors are now taking ethical considerations into their investment philosophy. This means assessing the impact your investments have on the environment, social and corporate governance issues. This may mean you choose to limit or avoid investment in companies that operate in industries such fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons. Instead, you may choose to invest in companies who service the community for the better, have strong workplace principles, are focussed on reduced climate impact etc. This area is diverse and there are many options available to suit your ethical investment values.

Further questions?

If you would like to know more about formulating an investment philosophy or ethical investing, please feel free to contact us.

This information has been produced by Jack McNamara, an Authorised Representative of Personal Financial Services Limited (ABN 26 098 725 145), of Level 10, 88 Philip Street Sydney NSW 2000, AFS Licence no. 234459. Any advice in this document is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making investment decisions. West Carr & Harvey Financial Planning is a registered tax (financial) adviser and any reference to tax advice contained in this document is incidental to the general financial advice it may contain. You should seek specialist advice from a tax professional to confirm the impact of this advice on your overall tax position. Whilst every care has been taken in the preparation of this information, it may not remain current after the date of publication and PFS and its related bodies make no representation as to its accuracy or completeness. Published: September 2025 © Copyright 2025