“Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett
It is essential for risk management and long term wealth management to have a well-diversified portfolio. But at what point are you no longer reducing risks and simply just reducing expected returns? If your advisor’s strategy is to own every stock in the market (via too many positions, ETF’s or funds), then that is not a strategy. It’s the lack of one. Overdiversifying results is a portfolio that lacks direction and underperforms. We are active managers. Our strategy is not to ride the waves of the market but to navigate them. We seek to add value through a grassroots approach to portfolio management. We build portfolios with individual stock and bond positions in discretionary and non-discretionary portfolios. We add value through insight into what we invest in and the ability to be tactical in changing environments. This approach allows us to be nimble in the preservation of capital in down markets and strategic when seeking growth in up markets. Ultimately this results in greater consistency in your returns and clarity into your financial well-being.
“Modern Portfolio Theory and Investment Analysis – Elton & Gruber” shows the additional stocks from 20 to 1,000 only reduced the portfolio’s risk by about 2.5 percent.
A focused approach aims to reduce volatility, rely less on broad market direction, and provide greater consistency.
Our investment strategy is based on extensive research and analysis of the market, economic trends, and company performance. We focus on investing in a portfolio of high-quality stocks and bonds that have a proven track record of delivering strong returns over time. Our objective is not to outperform every market, but to reduce the volatility and provide a stable return that aligns with our client’s individual investment goals. Our team offers a transparent and effective investment approach that can help you maximize your returns while minimizing your risks. Our focused strategy allows us to manage through changing market environments and be tactical to safeguard assets in down markets and seek growth in up markets. Our bespoke approach also allows us to manage portfolios more uniquely to a client’s personal situation. For example: tax efficient strategies like shifting income streams from “interest only” to “capital gains focused” for better tax treatment.
As an independent firm, we are not tied to any specific financial products or services. This allows us to provide unbiased advice and investment recommendations that align with your best interests.
By partnering with us, you can benefit from our expertise and experience in the investment industry.
We will work closely with you to understand your investment goals and help you build a personalized investment plan that aligns with your objectives.
Contact Craig Madill for a confidential no-obligation consultation.