Our Investment Philosophy
We follow a disciplined, research-driven approach to portfolio management. From asset allocation and investment selection to trading, rebalancing, and ongoing monitoring, our decisions are grounded in data, analysis, and objectivity.
Here are a few investment tenets we believe:
Markets are efficient: TIME IN the market is better than TIMING the market.
It is a futile endeavor to try and consistently “beat” and “time” the market over the long-term. Passive investment strategies tend to outperform actively managed ones.
Avoid behavioral pitfalls.
Some of the biggest threats to financial success are emotions, logical fallacies, and cognitive biases.
Asset allocation is the primary driver of portfolio returns.
How you allocate capital across asset classes, versus the individual securities you invest in, has the greatest influence on long-term performance.
Diversification matters.
Improve returns and reduce risk by spreading investments across different asset classes, securities, sectors, capitalization, and geographies.
Fees matter.
Transaction costs, commissions, and investment expenses can erode portfolio returns over time.
Taxes matter.
After-tax returns are improved by prudent asset location and proper investment across taxable, tax-deferred, and tax-free accounts. Harvesting losses to offset realized gains also helps reduce tax liability.
Simple usually outperforms complex.
There is no shortage of complex strategies available for investors. We must ask ourselves, do the returns justify the degree of risk, higher expenses, lack of liquidity, lack of transparency, and lack of regulatory oversight, all in an effort to consistently beat the market? Sometime yes, but generally no.
Have a plan.
Your portfolio should not exist in isolation. A sound investment strategy should be shaped by your financial goals, personal values, and current circumstances; not the other way around.
