Defining your goals is where a solid investment plan begins.  Building a portfolio starts with understanding what the portfolio needs to accomplish.  Knowing the purpose of the funds is imperative in selecting the risk required to meet those objectives.

 

Costs are given great weight when selecting an investment, we believe in keeping expenses low, but must consider that there may be value in higher costs if the investment is able to more efficiently capture the risk and return profile of an asset class.

 

This rule is merely common sense, but very difficult for individual investors to adhere to in their personal portfolios.  The market is driven by fear and greed in the short-term, our clients hire us as their professional investment advisor to take the emotion out of investing.

 

We purchase securities for our client’s portfolios for their long-term potential, but we also have a sell discipline if a security hits our target price or target weight which prompts a review to either reassess our target, trim the security, or sell it outright.

 

Timing the market is a fruitless effort; no one is able to consistently beat the market. There will be recessions, bull markets, tsunamis, political unrest, pandemics, astounding new technologies, and the world will continue to grow.  Building a well-diversified portfolio, exercising patience, and having reasonable expectations helps our clients weather the storms.