Investment Philosophy

Our investment philosophy differs from the ‘norm.’ We don’t pretend to know good stocks from bad stocks and we don’t pretend to know when the markets are going up or down. Our investment principles do not rely on predictions and prognostications and we do not believe emotions should guide investment behavior.

Instead, our efforts are guided by certain core beliefs about markets, diversification, and investment trade-offs, leading us to a different investment conclusion based on decades of academic research and empirical evidence. Specifically, our approach is guided by five key tenets:

1. Aligning your portfolio with your goals is critical

We understand there is no “one size fits all” approach to investing and we
spend significant time discussing goals, objectives, and related trade-offs with
every client.

We make every effort to plan our investment strategy for each client around the
timing of potential cash needs and the client’s own comfort in taking risk.

2. Risk and Return Are Related

We believe there are few, if any, “free lunches” in the investment world; most often, higher returns are only achieved by taking additional risk.

We believe there are some specific risks that have academic and historical support for producing incremental returns, while other risks (many of which are commonly recommended by other advisers) have historically not added value.

3. Diversification Is Important

We believe it is impossible to successfully forecast the short-term direction of the markets. As such, our portfolios typically have exposure to many different types of investments (stocks, bonds, real estate, etc.).

We also create portfolios that are highly diversified within each asset class, as we believe the competitive nature of financial markets make it extremely difficult for any investment manager to repeatedly identify the best-performing securities in advance.

4. Fees Are Important and Controllable

There are many aspects of the financial markets that investors and advisers do not control, but fees are a controllable factor that can have a significant influence on wealth.

As such, it is our goal to design our portfolios to be low-cost in nature.

5. Discipline Is Valuable

We believe that investors’ natural emotions often result in poor investment decisions, and that investors can increase the odds of achieving their goals if they follow a disciplined approach.