An investment portfolio is one piece of a comprehensive financial plan that is unique to each client. We customize each client's investment portfolio because we don't believe a one-size-fits-all portfolio or even a short menu of three models (conservative, moderate, aggressive) is sufficient for each client. A comprehensive plan can help investors to stay focused and make more informed financial decisions over time.

We believe that financial markets are generally efficient, meaning that the prices of securities reflect all available information. This means it is difficult to consistently outperform the market through individual security selection or market timing.

We emphasize the importance of taking a long-term perspective when making investment decisions. It is important to focus on the underlying fundamentals of an investment, rather than trying to time the market or chase short-term gains. This approach can help investors stay disciplined and avoid making impulsive decisions based on market fluctuations or other factors.

We stress the importance of diversification in investing because it helps to reduce risk and can lead to better long-term returns. We diversify portfolios across different asset classes, such as stocks, bonds, real estate, and alternative investments, as well as across different sectors and geographic regions.

Risk management in investing involves identifying, assessing, and prioritizing risks, and then implementing strategies to mitigate or eliminate those risks. We most often address risk through proper asset allocation, or the way in which we distribute investments among different asset classes.

While markets are generally efficient, we believe a dose of active management can be useful. We believe it is possible to identify and invest in factors that have been shown to potentially lead to higher returns over very long periods, such as:

  • small company size,
  • value, and
  • profitability.

Other factors which have been shown to have outsized effects on performance in shorter time periods include:

  • the rate of change of nominal economic growth,
  • monetary policy stance, and
  • narratives that drive market movements.

We believe that keeping investment costs low is important because excessive costs (especially from overactive managers) can eat into investment returns. These costs include tax implications, as taxes can have a significant impact. Therefore, we strive to keep costs as low as possible, including using passive management strategies when appropriate.

We are committed to using a diverse range of analytical tools and techniques, including both traditional financial analysis and more unconventional approaches such as game theory, complexity theory, and behavioral economics.