As the current Chairman of Diffractive Managers Group, John Hailer has been a leader at the forefront of many innovations within the financial services field. Working his trade for decades, Hailer has come a long way concerning advancing his knowledge and insights; ultimately with Hailer’s goal of helping other investors as they sift through turbulence while building their portfolios.
With decades of experience on his side, as well as success as the President & CEO Of Natixis, John Hailer has a variety of tips, tricks, and thought processes for future investors to hone in on.
Finding Success With Patience and Time
Whether you were drawn into the FOMO caused by various crypto booms or want to find success overnight, getting to where you want to go will often require time and patience. As they say, Rome wasn’t built in a night and neither was a successful portfolio. With that being said, John Hailer is more optimistic about quicker growth when the right techniques are put into place.
Hailer said in an interview regarding his work as Chairman of Diffractive Managers Group, “It’s easy to tell investors that they should focus on the long-term. But as an industry, we need to get better at building the types of investment portfolios that help investors get there.”
What does this mean in a more practical sense? John Hailer hopes that investors seek out more diverse portfolios that blend long-term risk with short-term risk while massaging potential volatility. Hailer suggests that portfolios capable of overcoming this type of turbulence are the kind that investors will want to hold onto for the long run.
Hailer went on to say that his early years were successful largely because he adhered to the Prudent Man Rule, which means to “never touch the principle”, a concept Hailer still preaches to this day.
John Hailer says of a well-built portfolio protected by the Prudent Man Rule, “You’re not risking your livelihood, you’re not risking all the things that are important to you.” Hailer added, “The goal is to get some good solid returns but do it in a way where you’re not risking your life.”
Overcoming Early Hurdles & Failures
When moving away from the Prudent Man Rule, Hailer saw that the industry turned downward, which would lead to the 2008 bubble burst that everyone in the sector is familiar with. Hailer said of the 2008 financial crisis, “We failed people. This never should have happened.”
Investment expert John Hailer went on to explain the importance of proper portfolio divesting and diversification while still remaining focused on an overarching theme. Hailer summed up this concept simply by saying, “A basket filled with every type of fruit imaginable is still just a basket of fruit.”
To overcome this concept as well as the effects of the ’08 crisis, Hailer would launch Durable Portfolio Construction Research Center with the goal of providing free-of-charge investment services. Hailer originally was given grief for the decision, though his choice ended up becoming the right one. Hailer said, “We showed that helping clients become better fiduciaries and helping them remain relevant in various market conditions, built a lot of trust.”