Our investment philosophy is grounded in the belief that simplicity is key to successful long-term investing. We believe that overly complex investment strategies, such as those involving illiquid securities, high fees, leverage, or black box strategies, invite outside risks into an investment plan. Our goal is to simplify the investment process by building globally diversified, low-cost portfolios that are constructed with a focus on risk management.
Our investment approach prioritizes asset allocation over stock-picking or constantly searching for alpha (beating the market). By building globally diversified portfolios across asset classes, strategies, market caps, and risk factors, we strive to maximize returns while minimizing risk. Rather than focusing solely on “beating the market,” we prioritize portfolio construction and risk management.
We also recognize that risk tolerance varies among investors, and we work with each client to determine their individual risk tolerance. By understanding our clients’ goals, time horizon, and risk tolerance, we can construct portfolios that are tailored to their specific needs.
While we believe that index funds and ETFs are often the most cost-effective and efficient way to gain exposure to broad market segments, we also recognize that individual bonds can play an important role in a well-diversified portfolio. By investing in individual bonds, investors can reduce volatility and ensure a predictable income stream.
In summary, our investment philosophy emphasizes simplicity, asset allocation, risk management, tax-efficient investing, retirement income planning, individual bonds, and tailoring portfolios to individual risk tolerance. We believe that these principles provide a solid foundation for successful long-term investing and help investors achieve their financial goals while minimizing risk.