Services

Investment Philosophy

Our approach to investing follows a few simple principles:

Use a disciplined process, maintain a long-term focus, manage risk appropriately and keep investment costs low.

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“Individuals who cannot master their emotions are ill-suited to profit from the investment process.” —Benjamin Graham

Mr. Graham wisely points out that emotional reactions to the equity markets can lead us to make poor decisions, whether the market is headed up or down. Successful investors follow a plan, which often includes systematic investing (such as dollar cost averaging), periodic re-balancing of the portfolio, and avoiding getting caught up in investment fads and market panics. Our patient, methodical investment approach does not make headlines but it has a proven record of building wealth over time.

We can help you choose the right asset allocation for your portfolio, ensure that your portfolio is diversified, and monitor the correlation among your investments. Proper diversification can help you profit from exceptional performance in different segments of the market, or regions of the globe. Choosing assets with low correlation means they will respond differently to changes in the market environment, which can reduce volatility and improve overall returns over time. By paying attention to diversification and correlation among assets, we can create portfolios that are broad in scope and balanced in composition.

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If you’re saving and investing for retirement, you may have decades to accumulate assets. In this situation, market downturns should not be cause for great alarm or a change in strategy, but a time to take a patient breath, or even an opportunity to take advantage of lower asset prices. This doesn’t mean you should start trading and buying more stocks necessarily, but if you’re investing systematically with a set contribution every month, you’ll get more shares for your dollar when the price is low.

If you’re re-balancing, you will be selling some assets that have held or increased their value, and buying those that have declined. While it can seem counterintuitive to sell your winners and buy things that are under-performing, in fact it’s a proven way to reduce risk and improve performance. Systematic re-balancing means you’re always selling high and buying low, through a disciplined process.

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All investing involves risk. Smart investors manage their risks well by understanding their tolerance, time frame and goals. We take time to clarify your investment needs and goals, so that you don’t make the mistake of putting your short-term funds into a long-term vehicle, and vice versa. We help you determine when it might be necessary to change your investment strategy or allocation based on changes in your needs and goals, and we’ll help you maintain that strategy when the market gets volatile.

If you are nearing retirement or already retired, we will help you adapt your investment strategy to suit your current time horizon and risk tolerance. Our clients are able to weather market downturns with composure because we have planned ahead with them. We don’t try to time the market, because nobody knows exactly when a correction is coming. However, we do know that downturns will come, and we can prepare for them in a way that will minimize damage to your portfolio and maintain focus on your long-term goals.

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All investments have costs: there are internal costs, costs associated with transactions, in some cases sales fees or commissions. We will help you understand the different cost structures associated with investments you already own, and those you may be contemplating. In general, we favor index-based strategies that deliver broad diversification at low cost. We often use exchange-traded funds, which typically have lower internal and trading costs, as well as offering trading advantages and tax efficiency.