Key Principals

Here are some of the key beliefs I have about investing after 30 plus years of experience:

  • Establishing clear investment goals is the foundation for success.
  • Getting asset allocation right can reduce risk and enhance returns.
  • It is important for clients to understand their portfolio to insure they are comfortable.
  • Inflation is a major factor to be dealt with when managing portfolios whether during retirement or investing for a future goal.
  • Only take as much risk as you can accept
  • Time is an investors friend. Overtime, returns coverage to the norm with stocks earning 7-9%, bonds 3-6%, and money market 2-3%.
  • Dividends are a big part of returns. Today a quality portfolio of companies can comfortably provide a dividend yield of 2.5-3.5% and the income stream can grow 8-10% per year. This is in addition to appreciation and provides an inflation protected income stream.
  • Markets and individual securities can temporarily go to extreme valuations which present buying or selling opportunities.
  • High investment fees get in the way of good returns. If you can earn 8% and pay 2% for management it makes a huge difference.
  • Astute investment management can add value over a suitable benchmark over time.