 Our Investment Approach/Philosophy
Our investment philosophy rests on two key principles:
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1.
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Grandma was always right "don't put all your eggs in one
basket" or in other words... diversify, diversify, diversify.
Why? Because of principle #2,
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2.
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Nobody can predict the future!
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Based on this, we use a combination of cash, bonds, stocks and
hedges in a globally diversified portfolio because research has
shown this has performed the best over the long-term. We break bonds
further out into short, medium, long-term and domestic as well as
foreign. We break the stock component out further into small cap
vs. large cap, growth vs. value and domestic vs. foreign. Our hedges/alternatives
include miscellaneous assets classes like real estate, precious
metals, natural resources, energy and alternatives.
We base our investment decisions on sound
investment research and
help you remove the emotions from the investment process and stick
to a disciplined strategy over the long-term. We believe there are
three ways to invest:
By Greed - which means you buy when things are high. We believe
money is a means to an end, not an end in itself!
By Fear - which means you sell when things are down
By Objectives - which means we have an overall understanding
of your entire financial picture and we structure the portfolio
to achieve the required rate of return to meet your goals.
Everybody says the basics of investing are to "Buy Low and Sell
High." However, we find that impossible to implement! Why? Because
we do not know when is low! When is high? Therefore, a foundation
of our investment strategy rests on the fact that we do not believe
in "market timing" (trying to outguess short-term market or industry
movements) or "stock picking" (we believe in efficient markets that
reflect all available information at any particular time). Our strategy
looks at broad diversification through the use of passive/index
funds that are low-cost and tax efficient, leaving more money for
you. We believe in some tactical asset allocation as broad economic
trends and implement it through a "core and satellite" approach.
Since we are Fee-Only financial advisors, we do not make any money
based on the particular mutual fund or investment instrument selected,
which allows us to put your interests first. We are proud to be
a DFA approved
advisor and the support they bring to our clients and us!
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