Financial Advisor Houston - 713-661-1040
Financial Advisor Houston:There are 5 key concepts to investment success. Successful investors and advisors use these fundamental financial investment philosophies

Our Investment Philosophy

We believe that there are five key concepts to investment success. No matter which direction the markets are heading in, successful investors employ these fundamental investment philosophies. While the ultimate goal for any investor is to maximize return while minimizing risk, it is important to note that no investment strategy can completely eliminate risk.

It is also important to note that in order for these philosophies to work effectively, our clients must truly partner with us, providing us with ongoing updates regarding portfolio information, risk tolerance and changes within their personal lives.

 
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Diversification

Most investors comprehend the basic premise behind diversification; "Don't place all of your investment capital into the same basket." Unfortunately, most investors interpret this basic premise to mean that they have achieved diversification if they have placed their capital into a variety of different securities. Truly diversified investment portfolios have their assets allocated across multiple asset classes. Asset allocation refers to an investment philosophy which allows individual investors to maximize their investment return for any given level of portfolio risk they are willing to accept, also referred to as the "efficient frontier".

The ideal portfolio allocation for our clients is built, based upon a variety of factors including investment risk tolerance, investable assets, investment time frame and investment goals. Once an initial asset allocation has been developed, we partner with our clients to allocate investment assets and then to monitor progress on an annual basis, making necessary adjustments as needed as percentage weightings change as markets change.

Lower Volatility

Less Portfolio Volatility=Greater Wealth

We partner with our clients to design portfolios which have as little volatility as necessary to achieve their financial goals and objectives. Not only will portfolios with lower volatility result in a reduction in the emotional curve experienced by clients, but they also enable them to create more wealth needed to achieve their financial goals and objectives.

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Global Diversification

U.S. investors tend to favor domestic securities when building their investment portfolios. But, this connection to domestic companies prevents many investors form leveraging the financial opportunity present within foreign securities. As global economies have continued to strengthen, so has the total investable capital market. Investors who look to overseas investments for part of their investable assets increase their opportunity to facilitate the generation and growth of personal wealth. Another benefit to global diversification within a client's portfolio also works to reduce the associated investment risk as U.S. equity markets and international markets do not move in parallel.

Varied Investment Approaches for Changing Markets

Academic research within the investment field has shown periods of price movements, with upward movements referred to as ‘bull markets' and downward movements referred to as 'bear markets'. Regardless of what direction the markets move in, investors still have personal financial goals and objectives which they desire to achieve. We partner with our clients to adapt investment approaches as the market environments shift, allowing them to take advantage of the different forces at work during increasing and declining markets. A tactical asset allocation is a key to navigating changing markets, as certain asset classes increase while others are declining. Focusing a client's portfolio on the areas of the market offering the best prospects for growth will help ensure that the investment plan remains on track.

Efficient Investment Portfolios

We employ an investment philosophy which has been utilized by money managers since 1972, Modern Portfolio Theory. When building portfolios based upon this theory, there is a maximum level of return an investor can expect to receive for any given level of investment risk, based upon a given combination of investments (Efficient Frontier). An investor's efficient frontier is determined by calculating the expected portfolio's rate of return, standard deviation and correlation efficient for each asset class. This information is then utilized to identify an ideal portfolio for the individual investor.

When clients come to us initially, their portfolio's often fall significantly below their ideal efficient frontier. Our role is to ensure that based upon the client's given level of risk tolerance, there portfolio is allocated in such a fashion as to maximize the probably of achieving their financial goals.

Give us a call at 713-661-1040 and let's start a conversation on how we can put our experience to work for you, TODAY!