Investment Philosophy
I believe that with the right strategy, markets can and do work for individual investors. I believe that a properly constructed, well-balanced and diversified investment portfolio can allow a person or a family to build wealth over time, wealth that can then be used for a variety of lifetime financial goals such as retirement, college education, charitable giving or legacy transfer to the next generations. I believe that by following a disciplined investment approach people should take advantage of the markets, and over time try to achieve financial independence.
Sometimes what stands in the way of achieving financial success is investment behavior. Study after study shows that even though markets do deliver investment returns over time, the actual investor returns usually lag behind. The fact remains that many individual investors have a tendency to do the wrong thing at the wrong time. Although most people are familiar with the expression “Buy low, sell high”, what investors actually do when faced with the unpredictable and sometimes dramatic fluctuations of the market, is often quite the opposite. When investors are euphoric they tend to chase the rising market and buy high, and when they are frightened they tend flee the falling market and sell low. This emotionally-driven approach forces investors to behave in ways that is potentially detrimental to their long-term financial objectives.
At the core of my investment philosophy is the idea that following a disciplined strategy and managing portfolio risk should help my clients do the right thing when faced with the difficult market conditions that will inevitably confront them. The words of Warren Buffett “Be fearful when others are greedy and greedy when others are fearful” serve as a guiding principle in how I help my clients get through periods of market turmoil. I believe that in the long run staying committed to a well thought-out and consistent investment plan can help my clients pursue their investment goals