In a recently-published book entitled From Experience to Expertise – Reflections of a Private Banker on the Lessons of Great 20th Century Investors, Lombard Odier reveals its management philosophy in light of the reflections of famous investors.

Taking the time to reflect on his main business activity: investment. This was the initiative taken by Thierry Lombard, Managing Partner of Lombard Odier Darier Hentsch & Cie, supported by Arnaud Apffel, co-head of Private Banking Investment Services, and Anne Aeschlimann, Portfolio Manager at Lombard Odier. Their shared perspectives have resulted in the publication of a work entitled From Experience to Expertise – Reflections of a Private Banker on the Lessons of Great 20th Century Investors.

In 100 pages aimed at a wide readership, the authors set out to communicate their passion for investment. Lombard Odier’s two-century-old existence gives this endeavor a special meaning. The experience acquired by the Firm over 200 years makes it possible to draw humbly on a set of simple but crucial lessons about wealth management.

The first chapter, entitled "Preparing to Invest," discusses how markets work, describes the most established management styles, and argues for the importance of self-knowledge to every investor. "The investor’s chief problem – and even his worst enemy – is likely to be himself," notes the book quoting Benjamin Graham, commonly hailed as one of the fathers of financial analysis.


In the second chapter, "Selecting your Investments," the authors emphasize the need for the investor to take a broad historical perspective, to understand the investment environment and major trends, as well as to develop one’s own opinion without getting locked into any one school of thought. "The overwhelming majority of people are comfortable with consensus, but successful investors tend to have a contrarian bent," comments the book, citing the ideas of the reputable asset manager Seth Klarman.

The actual practice of investing is addressed in the final part of the book, entitled "Constructing a Portfolio and Managing it Dynamically". Diversification, timing, preservation of capital and risk management are all discussed in this section.

To support the arguments developed throughout its pages, the book blends the analyses of Lombard Odier’s own investment specialists with lessons from exemplary great investors such as Warren Buffett and John Templeton. The aim is to compare the key ideas and principles guiding those investors’ choices with the management philosophy advocated by Lombard Odier.

To this end, there is one characteristic that stands out in the management style practiced by the Firm: its commitment to preserve and grow its clients’ financial assets over the long term. "A difficult task, which calls for patience and humility," Mr. Lombard points out. He concludes the book by quoting Warren Buffett, whose vision matches Lombard Odier’s. "Someone’s sitting in the shade today because someone planted a tree a long time ago," states the Oracle of Omaha.

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