Our Strategy

Three Key Concepts for Investment Success

Our investment philosophy can be summed up in a single phrase: Focus on the things you can control, not the things you can't control.

All too often, investment managers devote their efforts to trying to outguess the market - where it's heading and where to be (or not be) in the future.  We reject the costly and ineffective games that Wall Street encourages investors to play. While we can't know the future direction of the market and can't control which market sectors will or won't be in favor, we can devote ourselves to certain key concepts that are within our control, and that have been proven to have a significant, positive effect on investment performance.

We call these our Three Key Concepts For Investment Success.  These concepts are grounded in logic, reason and commonsense.  They are embraced by some of the largest institutional investors in the world - foundations, pension funds and endowments who all are charged with managing their money as prudently and effectively as possible.  These institutional investors don't play Wall Street's game, and we don't think our clients should either.

Concept One:  Maximize Cost Efficiency

If you could increase your net investment return without increasing your risk, would you want to do that?  Obviously, you would, and yet most investors - and their advisors - fail to focus on some very simple strategies that can significantly improve the cost efficiency of the investment portfolio, thereby increasing net returns in the process.

Concept Two:  Minimize Unnecessary Volatility

If you have two investment portfolios with the same average (arithmetic) return over time, you would probably expect them to generate the same ending wealth value.  But there is an important additional part of the equation:  A portfolio that has lower volatility will actually generate a higher compound return over time than a portfolio with greater volatility.

Obviously, then, you want to design your portfolio so that it has as little as necessary to achieve your goals.  While there are many ideas about the best way to accomplish this goal, only one asset-allocation strategy has won a Nobel Prize in Economic Science for its efforts in this area:  Modern Portfolio Theory.  Today, MPT is the gold standard for prudent investment management, whether for large institutional investors or individuals.

Concept Three:  Manage The Portfolio Proactively

We embrace the concept of "buy-and-hold", but we definitely do not embrace the concept of "buy-and-forget-about-it".  While we avoid making subjective decisions about the near-term direction of the stock market, we go to great lengths to manage your portfolio and monitor the investments within it.

Contact us today to find out more about our process and learn how a sound investment plan can help you achieve your goals.

Website Design For Financial Services Professionals | Copyright 2018 AdvisorWebsites.com. All rights reserved