Our Investment Approach
We work closely with clients to define an individualized investment plan that satisfies expectations for portfolio return while accounting for tolerance to risk. Portfolios are constructed to achieve specific objectives such as high income or growth with income. After carefully selecting securities, we review portfolios regularly to ensure that individual investments and overall asset allocation continue to meet these objectives in the context of ever-changing economic landscapes and continuously updated capital market forecasts. Cash and investments are held at Charles Schwab or, if a prior relationship exists, at a custodian chosen by the client. Clients can monitor performance via monthly statements provided by the custodian and are free to add or withdraw funds at any time.
We seek to construct portfolios with reasonable risk-adjusted returns. That is to say, we seek out investments that are likely to yield positive and consistent returns from year to year, while maintaining a low risk profile that substantially reduces portfolio volatility relative to market fluctuations. In general, we seek to invest in securities offering uncommon value. Conservation of principal is always of primary concern. In selecting equities, we consider the historical growth and stability of earnings and dividends, and we generate expectations for a company's future based on global macro-economic trends as well as perceptions of that company in the market. Fixed income instruments are evaluated based on the strength of the issuer, their credit rating, and current yield-to-maturity relative to expectations for future movements in interest rates and inflation.
We believe that a key to managing risk is designing portfolios that are diversified across asset classes, across industrial sectors and across national borders. Therefore, the landscape of investments that we consider is broad and global in scope. Depending on the goals of the portfolio, we may invest in equities (stocks), fixed income (bonds, CDs, preferred securities), and precious metals. We may invest in individual securities as well as mutual funds, closed-end funds and exchange-traded funds. In all cases, we seek to ensure that no single holding will jeopardize the long-term performance of the portfolio.
Whether a portfolio favors equity or fixed income, we invest with a level of care and diligence that reflects our commitment to ensuring the long-term financial security of our clients.