Our Core Investment Philosophy

Our basic investment philosophy is built upon risk management. Every investment contains some degree of risk. Those investments with lower returns and perceived less risk carry inflation and purchasing power risk. We also need to consider taxes in the formula of return. We are seeking to develop REAL and SUSTAINABLE Wealth. So we need to consider after income tax and, perhaps, after estate tax returns.

Still, the major ingredient in risk management is diversification through asset allocation. Many people diversify by owning several different stocks or other investments. The problem is that many of them may fall into the same asset category (large cap, small cap, bond, etc.). Having multiple investments in the same asset category is not diversification.

There is no guarantee that asset allocation or diversification will enhance overall returns, outperform a non-diversified portfolio, nor ensure a profit or protect against a loss.