Determining The Most Impactful Decisions

Are you keeping up with inflation? How do you make investment choices? Natural instincts tend to hurt an investor’s ability to capture the long-term returns the market offers. Keeping ahead of inflation requires taking measured risks with assets. Investments should be deployed in a way that is strategic, methodical, and incorporates the most current research. Our client investment portfolios leverage the wisdom the academic community has discovered over the last 40 years. We call this financial science. Prudent investing carefully considers each portfolio’s time horizon, capacity for risk, and required return.

Are you ready to take the next step towards financial freedom and fulfillment? Let’s embark on this journey together! If this is of interest to you and you have investable assets of more than $500,000, please contact us today to get started.

Investment Philosophy

Understanding the dynamics of the market is crucial for successful investing. The market acts as a powerful force, bringing together countless participants who trade securities based on real-time information, ultimately determining prices. It’s important to note that the current price of any security reflects all publicly available information. This efficiency makes it challenging for investors to consistently find mispriced securities through stock picking or market timing. Similarly, relying on past performance as a basis for investment decisions has proven to be unreliable, as it offers limited insight into future results.

While individual securities may experience significant fluctuations, the overall financial markets have historically delivered positive performance over the long term. This is why investing in diversified global portfolios is key. By spreading your investments across various asset classes, volatility is reduced and the likelihood of attaining your goals is increased.

The most significant decision an investor makes is how much to allocate among asset classes (i.e. stocks vs bonds). This decision should be based on the investor’s risk tolerance. For instance, if an investor is comfortable assuming more risk, he should invest a higher portion in stocks and can expect a higher long-term return.

Remember, successful investing requires a thoughtful approach and a long-term perspective. Align your asset allocation with your risk tolerance, diversify your portfolio, and stay grounded.

Dimensional Fund Advisors

Our portfolio implementation primarily utilizes securities from Dimensional Fund Advisors (DFA). DFA’s investment approach is grounded in economic theory and backed by decades of empirical research. Their internal team of researchers collaborates closely with leading financial economists to gain a deeper understanding of the sources of returns. Research has shown that securities offering higher expected returns share certain characteristics, which they call dimensions. DFA structures broadly diversified portfolios that emphasize these dimensions, while addressing the tradeoffs that arise when executing portfolios. Each day, DFA’s dedicated portfolio managers and traders strive to strike the perfect balance between costs, expected returns, and diversification. Leaving no stone unturned in the pursuit of even the slightest expected gain, DFA recognizes that every incremental improvement can make a significant impact over time.

Rest assured that when you choose us as your investment advisor, you are benefiting from the experience and insights of Dimensional Fund Advisors, a known name in the industry.

Interested in us guiding your financial steps?