Our investment management principles are based on creating individually customized portfolios, taking a balanced approach, and selecting high quality investments.
We build balanced portfolios tailored for each individual’s risk tolerance and financial situation. Specific needs including income in retirement, long-term investment growth, or particular investment considerations are all considered. In many cases, clients arrive with existing positions that we integrate to create a balanced portfolio while also minimizing capital gains.
At the core of our stock holdings is a diversified group of large, high-quality, dividend-paying stocks. To add further diversification as well as exposure to growth opportunities, we also add a smaller allocation to mid- and small company stock funds as well as international stock funds in both developed and emerging market economies. To protect against the risk of rising interest rates, we select individually “laddered” bonds purchased and held to maturity. Because these bonds are held to maturity, we know what the return will be when they are purchased, regardless of short-term market fluctuations. To further balance this bond side of the portfolio, we also use a number of diversified higher yield strategies. These include diversified mutual fund investments in high-yield bonds, asset backed securities, international bonds, and alternative investments that we view as attractive.
We seek companies with proven management teams, strong balance sheets, and a sustainable competitive advantage over their peers. A strict valuation discipline ensures that stocks are purchased with an attractive level of upside potential relative to downside risk. Although we plan to hold most stocks for a long period of time, we do sell stocks in cases where the valuation no longer offers an attractive risk/reward level or their investment fundamentals change.
To learn more about our investment principles and strategies, contact us today.