Our Investment Philosophy

Capital Markets Build Wealth

As an independent advisor, we are not tied to any company or product.  We choose to recommend the mutual funds that we feel are the best solution for our clients.

We design and manage investment portfolios with a focus on achieving your specific goals, based on your time horizon while enabling you to live comfortably with the portfolio risk.

While ongoing inquiry and new insights continue to add to our understanding, a core of essential tenets has emerged to withstand the critical tests of time and multi-disciplined scrutiny.

1.  The best way to capture market returns is to participate in expected long-term growth.  This insight comes from the evidence indicating that markets are functionally efficient as they drive our capital economy, delivering wealth to its body of participants over time.

You can try to outperform others by speculating on individual securities or hot trends. But your odds are poor, to say the least. The added effort is not expected to deliver more than what the market already delivers to its body of participants. It’s far more likely to generate increased costs and complexities, eroding your ability to remain true to your own plans.

Our Strategy: We want you to efficiently capture the market factors that are expected to contribute to your personal wealth over time. To do that, we’ll structure your investment portfolio plainly and sensibly – and explain it to you fully and openly– so you can stick with it throughout market risks and uncertainties.

2.  Because risk and reward are strongly related, they need to be deliberately managed to reflect your unique goals. While the market as a whole is expected to deliver wealth to its body of participants, clearly, there are individual winners and losers. The greater the expected return you seek, the more market risk you must accept … but only to the extent that it makes sense for your personal needs.

Our Strategy: In accordance with your financial goals, we design your custom investment portfolio to expose you to an appropriate mix of market factors.

  • We balance those factors expected to earn less but perform more reliably, with those that are expected to be a wilder, but higher-returning ride.
  • Your asset mix can include stocks versus bonds, as well as stocks that exhibit particular factors (such as those representing value versus growth companies, small-company versus large, and developed versus emerging economies).
  • The right mix depends on your particular circumstances within the cycle of your life-long investment journey.

3.  Diversification helps dampen market risk. Diversification is another potent ingredient in managing market risk. Through broad and deep diversification (i.e., not just holding a number of securities but ensuring they are spread among a number of market factors), the sum of your whole risk can actually be lower than its individual parts.

Our Strategy: First, we allocate your assets among various market factors, as described above. Then, within each factor, we spread your assets among thousands of individual securities. To accomplish this, we turn to a handful of providers who manage their mutual funds according to the same strategy we espouse (most notably, Dimensional Fund Advisors and Vanguard). Their practical, low-cost solutions allow us to apply sound financial theory to your investment activities.