INVESTMENT STRATEGY and policy
Our objective when helping clients manage their accounts is to custom tailor the portfolio to best suit their needs, risk tolerance and investment objectives. We accomplish this by incorporating some uniform strategies or principles even as we handle each account on an individual basis. Those strategies are:
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We take into consideration many factor (including risk tolerance, time horizon, etc.) as a primary guideline for any recommendations pertaining to portfolio construction. As conditions change, we may from time to time, increase or decrease the cash allocation if the market appears short term to be overbought or oversold.
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Our investment philosophy involves diversification over a broad array of industries as represented by the S&P 500 index. We will, however, generally look to overweight or underweight specific sectors depending on the current economic cycle, when appropriate.
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If appropriate, these are equity positions that we would typically anticipate being held for longer holding periods, possibly two to five years. The core positions represent companies we feel have excellent business models, strong financials and good management. Often, the companies selected as core positions will have a history of paying dividends and increasing those dividends over time.
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Often, we may believe opportunities exist in the marketplace that represent favorable risk/reward situations that may not be well understood by the investing public. In those scenarios, we will strive to take advantage of these as they present themselves and when appropriate.
Holding stocks for the long-term does not ensure a profitable outcome. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation.
