We create your Personal Investment Portfolio from a combination of three asset classes:

Stocks: higher returns and higher risk; Bonds: lower returns but lower risk; and Cash/money market: very low returns but almost zero risk

About Money

stock selection:

While stock ownership has traditionally provided inflation beating returns, it can also be a source of risk. That’s why we prefer a portfolio of stocks diversified across economic sectors to reduce short term fluctuation in a portfolio’s bottom line.

We look for some specific traits before investing in the common stock of a company.

  1. A valuation that is substantially below historical norms for the company based on its earnings, revenues (or sales), and cash flow.
  2. A readily identifiable event of catalyst that has already brought the stock down to attractive levels, or will result in measurably better financial performance in the very near future.
    In the initial stages of a client relationship, we encourage all clients to identify any specific companies or industries they are would prefer to avoid for personal reasons.

bond selection vs. cash investments:

  • Due to the numerous variables in each bond issue (liquidity, rating, maturity, duration, taxability, etc.) and each client (time horizon, tax bracket, etc.) we evaluate bonds and cash on a case-by-case basis. Clients with lower tax brackets or in tax advantaged accounts (IRAs, ROTH IRAs, Pension Plans, etc.) will typically benefit from taxable investments while those in higher brackets will net larger returns from tax free municipal bonds.