My Portfolio Guide’s investment philosophy is based on our dedication to act only in our clients’ best interests. It’s this client-centric approach that guides each and every investment decision. We are not stock jockeys with the “hot tip” of the day…We are not market timers with crystal balls or portend the unknown events of tomorrow. We don’t sell investors, we guide them.
That being said, our Investment Philosophy was developed from best learned practices known to the industry yet we uniquely integrate them to guide investors through the dynamic changes that global markets present. Since no one philosophy can ever be right all the time, our aim is to best manage risk by being right most of the time…
My Portfolio Guide’s investment philosophy is centered around the following criterion:
Like the foundation to your home or the skeleton of our bodies, a portfolio needs to have a solid structure. We accomplish this first step by establishing a core to your portfolio. The core is derived from exposure to indexes/benchmarks among specific asset classes. Each asset class is then weighted specifically to what your risk tolerance, growth or income needs are.
Macro Economic Cycles
With global economic activity in a constant state of change, we look for opportunities in diverse asset classes. We believe that while broad diversification is crucial, there are also times when it’s prudent to “tap the breaks” and reduce exposure to troubled asset classes. We also look to strategically diversify the portfolio by over and underweighting exposure in each of the 10 major economic sectors.
Growth and Value Style Trends
Unlike some advisors we will never be one or the other. Without dismissing the entire notion that investment style is important, we simply think that growth versus value is sometimes a game of semantics and borderline investment jargon. Warren Buffet himself (a traditional value investor) said “growth and value investing are connected at the hip”.
A typical growth company ideally grows their bottom line several times over the average and therefore so does your return. A value company is one perceived to be selling at a discount to its intrinsic value. We do our homework to find companies that are growing and theoretically undervalued.
Fundamental and Technical Analysis
My Portfolio Guide primarily selects companies to invest in based on their fundamentals (business model, management, earnings, dividends etc). We typically favor companies that are leaders of their respective industries. We simply lean towards the adage of “buying what you know”…
One must also consider the forces of perception and investor psychology. This is where Technical and Sentiment Analysis comes into play. Our Technical/Sentiment analysis is driven by gauging the sentiment of market players. How the “tea leaves” (charts) read for a particular stock or index can impact the entry and exit of our decision. Bullish sentiment can push up bad stocks and bearish sentiment can push down good ones.
In sum, we believe that one shouldn’t “collect” stocks but rather select them based on a pragmatic blend of fundamental and technical analysis.
Minimization of Investment Expense
“You get what you pay for” No! This adage may be true in many cases but when it comes to investment vehicles we believe that most investors don’t realize how much they pay in hidden or unnecessary expenses. Our aim is to make your money work for you and not pay useless fees or loaded investment products to line someone else’s pockets. During our initial analysis of the average portfolio we will typically be able to identify how to eliminate at least 1% of fees and expenses before we even begin working with you! This simple truth allows more of your investment dollars to be working smarter and over time also improves your performance. See our Fees page for a clear example of just how important this topic can dramatically impact your life.