🛡️ The primary objective of a family office is to manage and preserve capital, focusing on risk management rather than solely maximizing returns.
📈 While growing the capital over time is a secondary goal, it is pursued cautiously, aiming to stay ahead of inflation.
💼 Family offices diversify investments across financial markets, real estate, and alternative assets to efficiently manage wealth.
@mfncristianbarros:
“Something very important to keep in mind is that the main objective of a family office, or when you are managing certain fortunes, is not to rapidly increase capital or to make capital profitable, because for that, we know that we have to take on a higher level of risk. The risk has already been assumed at some point, that base of appreciation of capital, of growing money, of generating that wealth, has been through the company, the company that has grown and has given rise to the money. Once they already have certain assets, and those assets begin to diversify and are managed in the most efficient way, you have to understand, and it has to be very clear to you, that the main objective is to manage risk, or above all, what we call preserving capital, not just seeking to increase that wealth. Evidently, you want it to increase over time, but the objective, the first objective, is not to make a profit; the first objective is to maintain that capital, manage and preserve that capital, and then, as a secondary objective, is to grow that capital over time, preferably, evidently, above inflation.”
Watch the exact part of the video where Cristian talks about the primary goals of a family office here:
Watch the video on YouTube.
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