Managing an investment portfolio is like gardening. There’s more to it than just planting the seeds. You need to weed, water, and sometimes prune the garden in order to get the best results. Likewise, there’s more to creating and caring for your nest egg than simply buying investments. You need to keep a watchful eye and tend to it, just like you would a garden.
In order to manage our client’s investments, we have a specific process we use.
Every great organization has a process it follows. They don’t do something just because everyone else is doing it. They don’t chart their course based on what the news media is saying, and they don’t rely on their “gut instinct” to make decisions. They use a tried and true process.
McDonald's has a process for making delicious food fast. The Pittsburgh Steelers has a process for making good linebackers into great ones. All great investors like Warren Buffet, Peter Lynch, and George Soros have a process that they follow and rarely deviate from.
We have an investment process that we have back-tested in Up and Down markets since 1970.
We follow 3 simple investment rules:
- Asset Allocation: We don't put all our eggs in one basket. We believe a diversified portfolio should include not only stocks and bonds, but also real estate and commodities such as precious metals.
- Investment Selection: We screen the investment marketplace frequently with two criteria in mind. Generally we look for either sectors of the market that are doing the best (known as “momentum” investing) or we look for sectors that have pulled back and appear to be "on sale" (known as “value” investing or “reversion to the mean” investing).
- Rebalancing: We utilize a proprietary system to strategically rebalance investments, raising exposure to certain asset classes, and lowering exposure to others based on market dynamics and your personal investment plan.
Disclaimer: Past performance is not a guarantee of future results, and there are no guarantees that prior markets will be duplicated. There are risks associated with investing, including the loss of principal.