Investment Philosophy and Methodology

Our objective is to optimize your risk-adjusted return, not chase after the highest return.  We focus on strategic allocation and broader long-term market trends, not short-term trading or market timing.  We seek to address the three risks we encounter at all times:  business, interest rate, and accessibility.  We seek to ensure that you have an adequate cash reserve or access to cash at all times.  To help mitigate individual company event risk in stocks, we emphasize actively managed mutual funds and further diversification across multiple fund management companies in every portfolio.  Similarly in bonds, we may employ multiple holdings. 

To help mitigate interest rate risk, we emphasize primarily intermediate duration/maturity income-oriented investments.  To help mitigate business and market volatility risk, we primarily employ a conservative total return investment approach, which emphasizes asset value and long-term growth potential coupled with a history of solid cash flow from interest and dividends.  The result is a blend of both growth and income investments in most accounts and portfolios. 

Our minimum portfolio dividend and interest yield target is 3.0%.  Our clients’ typical asset allocation is 60% to 70% income oriented and 30% to 40% growth oriented.  We take an intermediate-term “buy and hold” approach with a customary investment holding period of three to seven years.

Investing involves risk, including the possible loss of principal.  Diversification does not ensure a profit or protect against loss.  There is no guarantee that investment objectives will be achieved.