Investment Philosophy

Get sound investment advice and management backed by academic evidence.
Your investment portfolio should align your money with your personal aspirations to help you live the life you want most. To accomplish that, you can’t buy investments blindly and hope for a great outcome. Rather, you need investment principles based on sound academic science to help guide your decisions. Our investment philosophy helps guide our decisions regardless of what happens to stock markets.

1. Don’t Try to Outguess the Market

The stock market’s pricing power works against investment managers who try to outperform through predictions or forecasting.

As evidence, only 17% of US stock mutual funds and 18% of fixed income funds have survived and outperformed their benchmarks over the past 15 years!

Most investment managers fail because they try to outguess the market.

Don’t try to outguess the market.

2. Resist Chasing Past Performance

Some investors select mutual funds and investments based on past returns.

However, research shows that yesteday’s winning managers did not continue great performance in subsequent years.

Selling past performance is a great sales tactic. But, it’s NOT a great investment approach.

Resist chasing past performance because it offers little insight into an investment manager’s future returns.

3. Invest for the Long-Term

The financial markets have rewarded long-term investors. As a result, people expect a positive return on the money they invest.

As evidenced in the chart to the left, historically, the stock and bond markets have provided growth of wealth that has more than offset the rising cost of goods (inflation).

While nobody can predict what markets will do in the short-term, historical evidence shows that markets have rewarded long-term investors.

Invest for the long-term.

4. Practice Smart Diversification

Diversification helps reduce risks that have no expected return, but diversifying within just the United States is not enough.

Investing both in the United States and in other countries can broaden your investment opportunities.

Practicing smart diversification may improve your chances of enjoying a successful retirement without running out of money.

5. Avoid Market Timing

People love to predict the stock market. Unfortunately, market timing and forecasting doesn’t work consistently over time.

You never know which areas of the stock market will outperform from year to year.

By starting with the right mix of investments and holding long-term, investors are well positioned to seek returns wherever and whenever they occur.

6. Manage Your Emotions

Investment bahavior is the predominant predictor of investment success.

Unfortunately, many people struggle to separate their emotions from investing when markets go up and down.

Reacting to current market conditions may lead to making poor investment decisions.

Remove emotions from your investments for greater chance of success.

7. Look Beyond the Headlines

Daily market news and commentary can challenge your investment discipline.

Some messages stir anxiety about the future while others tempt you to chase the latest investment fad.

When headlines unsettle you, focus on your plan and objectives, instead.

10. Focus on What You Can Control

National debt. Inflation. War. These are all things you CAN’T control.

Fortunately, as your investment advisor, we can offer expertise and guidance to help you focus on actions you can control.

As a result, you may reduce the stress associated with investing and gain confidence in your future.

You Want Financial Security in Retirement.

We have a strategy to get you there.